HUMAN RESOURCE PLANNING

MASTERS IN HUMAN RESOURCES
DEVELOPMENT & MANAGEMENT
SEMESTER–IV
Human Resource Planning 100 Marks Sem
IV
Dr. Prachi Murkute

 1. Human Resource Planning
 The planning process. Indicators and trends.
 Ascertaining demand and supply in human resource.
Causes of demand, forecasting techniques and human
resource requirements.
 Estimation of internal supply and external supply.
 Linking human resource planning with strategic human
resource management.

 2. Job Analysis
 Job analysis and design.
 Job analysis information and use.
 Collection of job analysis information.
 Application of job analysis information.
 Factors influencing job design methods.
 Job analysis techniques.
 Assessing job analysis methods.

 3. Recruitment of Employees
 Organizational and external factors affecting recruitment.
 Sources of methods of recruitment.
 Assessing recruitment methods.
 Ethical issues in recruitment, e.g. Unfair discrimination,
data protection.

 4. Selection of Employees
 Influences on recruitment and selection.
 Selection as a process.
 Validity and reliability of selection methods.
 Ethical issues in the selection process, e.g. Equal
opportunity.
 Methods for using information in selection decisions.

 5. Orientation and Placement of Employees
 Orientation programmes and orientation follow-up.
 Employee placement: promotions, transfers and
demotions.
 Separations: attrition, layoffs and termination.

 6. Employment Tests
Concepts of Testing, Types of tests, Executive Talent
Search.

 7. Interviewing, Placement and Induction
 Role of Interview, Forms, Steps in Interviewing,
Interview Skills, Interview Efficiency,
 Training and Development of the Interviewer,
 Campus Selection Interview.
 Conference, Interview Technique used for global
sourcing.
 Placement and Induction.

 8. HR Planning and Selection in the Modern
Business Environment:
 Changing perspectives in the field of recruitment and
selection in the information age: e-recruitment and
selection.

 9. Case Studies and Presentation.

 Reference Books

 Human Resource Planning – D.K Bhattacharya
 Human Resource Planning – M.S Reddy
 Planning & Managing Human Resources – William J
Rothwell, H.C Kazanas
 Human Resource Planning – James W Walker
 Human Resource Development – Uday Kumar Haldar –
Oxford Publications


UNIT 1. Human Resource Planning
 The planning process. Indicators and trends.
 Ascertaining demand and supply in human resource.
 Causes of demand, forecasting techniques and human
resource requirements.
 Estimation of internal supply and external supply.
 Linking human resource planning with strategic human
resource management.

Human Resourse Management (HRM)
 Human resources may be defined as
“The total knowledge, skills, creative abilities, talents
and aptitudes of an organization's workforce,
as well as
the values, attitudes, approaches and beliefs of the
individuals involved in the affairs of the organization”

Functions of HR
MANAGERIAL
FUNCTIONS
•Planning
•Organizing
•Staffing
•Directing
• Controlling
OPERATIVE
FUNCTIONS
•Development
•Compensation
•Motivation
•Maintenance
• Integration
•Emerging Issues

HR Planning
 HR Planning is the process of examining an organizations’
future human resource need.
 It involves:
 Identifying and acquiring the right number of people with the proper skills
 Motivating them to achieve high performance
 Creating interactive links between business objectives and resource
planning activities

1. Need of HR Planning
 Business Needs
 Financial Feasibility
 Future Plans
 Brand Name
 Appropriate current level
 Is a full time employee
required?
 Do we have a succession
plan for the replacement?
 Does the vacancy create
career development
opportunities for existing
people?

Human Resource Planning (HR Planning) is both a process and a set of plans.
It is how organizations assess the future supply of and demand for human
resources.
An effective HR plan also provides mechanisms to eliminate any gaps that may
exist between supply and demand. Thus, HR planning determines the
members and types of employees to be recruited into the organization or
phased out of it.
Human Resource Planning

Technological forecasts
Economic forecasts
Market forecasts
Organizational planning
Investment planning
Annual operating plans
Technological forecasts
Economic forecasts
Market forecasts
Organizational planning
Investment planning
Annual operating plans
Annual employment
requirements
Numbers
Skills
Occupational categories
Annual employment
requirements
Numbers
Skills
Occupational categories
Existing employment
inventory
After application of
expected loss and
attrition rates
Existing employment
inventory
After application of
expected loss and
attrition rates
VariancesVariances EndEnd
If surplusIf surplus If shortageIf shortage
Decisions
Layoff,
retirement,
etc.
Decisions
Layoff,
retirement,
etc.
Decisions
Overtime,
recruitment,
etc.
Decisions
Overtime,
recruitment,
etc.
EndEnd EndEnd
Strategic Planning Human Resource Demand Human Resource Supply
Compared
with
If none
Action
Decisions
HRP Process

All effective HR planning shares certain features. It is generally agreed that HR
planning involves four distinct phases or stages:
Situation analysis or environmental scanningSituation analysis or environmental scanning
Forecasting demand for human resourcesForecasting demand for human resources
Analysis of the supply of human resourcesAnalysis of the supply of human resources
Development of plans for actionDevelopment of plans for action
The HRP Process – based on 4 stages

Why is HRP important ?
 Even an imperfect forecast is better than none at all
 Anticipating needs – prepare for the future gives you an edge
 Address potential problems – avoid skill deficiencies
 HRP ensures that the organization has:
 Right Number
 Right Kind
 Right Place
 Right Time

Job Analysis (JA)
 Job analysis is primary tool in HRM
 Job Analysis is a process to identify and determine in
detail the particular job duties and requirements and
the relative importance of these duties for a given job.
 Job Analysis is a process where judgments are made
about data collected on a job.
 A HR manager has to undertake job analysis so as to
put right man on right job.

Reasons For Conducting Job Analysis
 Staffing – would be haphazard if recruiter did not know
qualifications needed for job
 Training and Development – if specification lists a particular
knowledge, skill, or ability, and the person filling the position
does not possess all the necessary qualifications, training
and/or development is needed
 Compensation and Benefits – value of job must be known
before dollar value can be placed on it
 Safety and Health – helps identify safety and health
considerations
 Employee and Labor Relations – lead to more objective
human resource decisions
 Legal Considerations – having done job analysis
important for supporting legality of employment practices

 Nature of jobs required in a concern.
 Nature/ size of organizational structure.
 Type of people required to fit that structure.
 The relationship of the job with other jobs
 Kind of qualifications and academic background required
for jobs.
 Provision of physical condition to support the activities of
the concern. For example- separate cabins for
managers, special cabins for the supervisors, healthy
condition for workers, adequate store room for store
keeper.
The information collected under job analysis is :

Advantages of Job Analysis
 Job analysis helps the personnel manager at the time of
recruitment and selection of right man on right job.
 It helps him to understand extent and scope of training required in
that field.
 It helps in evaluating the job in which the worth of the job has to
be evaluated.
 In those instances where smooth work force is required in
concern.
 When he has to avoid overlapping of authority- responsibility
relationship so that distortion in chain of command doesn’t exist.
 It also helps to chalk out the compensation plans for the
employees.
 It also helps the personnel manager to undertake performance
appraisal effectively in a concern.

Two outcomes of job analysis :
 Job description (JD)
 Job specification (JS)

Products of Job Analysis
1. Job Description –
Written summary of nature and
requirements of a job.
4-28

Job Description Contents
 Date written
 Job Status
 Position Title
 Job Summary
 List of Duties and Responsibilities
4-29

Job Description Contents (continued)
 Supervision – Received & Exercised
 Principles Contacts
 Required Meetings and Reports
 Career Mobility
 Competency Requirements**
 Education and Experience Required** 4-30

2. Job Specification – Competency, educational, and
experience requirements also known as “KSAs”
 Knowledge
 Skills
 Abilities
4-31

Contemporary Issues in Job Designing
 Telecommuting / Work from Home:
 Job Sharing:
 Flexi-Working Hours
 Alternative Work-Patterns:
 Technostress:
 Task Revision
Chapter 4 32

 Telecommuting or work from home is considered as the best alternative of working
from the actual office.
 The concept of virtual office is gaining more and more popularity because of ease
and convenience associated with it. By using computer networks, fax machines,
telephones and internet connection, employees can communicate and perform the
job from home.
 It eliminates the need of coming to office everyday and offers employees the
convenience to work at the comfort of their home.
Chapter 4 33

 Job Sharing:
 It is the second most preferable alternative of traditional working
styles where two or more individuals share the responsibilities of a
full time job.
 They divide the tasks, responsibilities and compensation according to
their mutual consent.
 This option is generally used by women who are on maternity leave
or have family and kids to look after but want to continue their job.
 These days, organizations are open to this kind of working style
where two or more individuals can share a job.
34

 Flexi-Working Hours:
 These days, organizations allow their employees to work according to the timings
that suit them best. There are 3-4 working schedules and individuals can choose
any one of them depending upon their availability.
 Employees can work in early hours as well as night hours. This is good for those
individuals who have colleges or some other engagements during the day or
specific hours of the day.
 The best part is that unlike telecommuting, flexi-timings give them chance to
communicate with other employees too.
Chapter 4 35

 Companies these days allow their employees to work
on alternate months or seasons.
 Though the concept is not that common in India but can
be seen in European and American world of work.
 They also have the option of working two to three full
days and can relax after that.
Chapter 4 36

 Technostress:
 Technostress is the latest technology to keep a check
on employees’ performance even when they choose to
work from home.
 Because of the introduction of new machines, there
performance can be electronically monitored even
when they are not aware of it.
Chapter 4 37

 Task Revision:
 Task revision is nothing but modification of existing
work design by reducing or adding the new job duties
and responsibilities to a specific job.
Chapter 4 38

Methods of Collecting Job Data
 Questionnaire:
Questionnaire method of job data collection is
desirable
Chapter 4 39

 Checklists:
 The checklist method of job data collection differs from the
questionnaire method in the sense that it contains a few subjective
questions in the form of yes or no.
 The job holder is asked to tick the questions that are related to
his/her job. Checklist can be prepared on the basis of job informa-tion
obtained from various sources such as supervisors, industrial
engineers, and other people who are familiar with the particular job.
Chapter 4 40

 Critical Incidents:
 This method is based on the job holder’s past experiences
on the job.
 The incidents so reported by the job holders are, then,
classified into various categories and analyzed in detail.
 Here, the job analyst requires a high degree of skill to
analyze the incidents appropriately described by the job
holders. However, this method is also time-consuming one.
Chapter 4 41

 Diaries or Log Records:
 In this method, the job holder is asked to maintain a diary
recording in detail the job-related activities each day. If
done judiciously, this method provides accurate and
comprehensive information about the job.
 This overcomes memory lapses on the part of the job
holder. As recording of activities may spread over several
days, the method, thus, becomes time-consuming one.
Chapter 4 42

 Technical Conference Method:
 In this method, a conference is organized for the supervisors who
possess extensive knowledge about job. They deliberate on various
aspects of the job. The job analyst obtains job information from the
discussion held among these experts/supervisors.
 The method consumes less amount of time. However, the main
drawback of this method is that it lacks accuracy and authenticity as
the actual job holders are not involved in collecting job information.
Chapter 4 43

The problems that may crop up while conducting job
analysis are:
 1. Lack of support from the top management.
 2. Relying on one source and method of data collection.
 3. Non-trained and non-motivated job holders who are the
actual source of job data.
 4. Distorted information/data provided by the respondents
i.e., the job holders because of non- preparedness on their
part.
Chapter 4 44

Methods of collecting Job Data
Chapter 4 46

Nature of Planning
 1. Planning is a continuous process
 2. Planning concerns all managers
 3. Plans are arranged in a Hierarchy
 4. Planning commits an organization into the future
47

Projecting Human Resource Supply
Assessment of current supply
Skills inventories
Analysis of human resource flows
4.6

HRP- HR Planning
 Means-
 Assessment of HR requirements
 Time & stages of requirements
 Right person ---Of Right type ---In Right number
 Definition – HRP is defined as the process by which
management determines how an organization should
move from its current manpower position to its
desired manpower position.
 HRP is also called manpower planning, personnel
planning or employment planning .

Human Resource Forecasting
 HR Forecasting attempts to
determine the supply and
demand for various types of
human resources, and to
predict areas within the
organization where there will
be labor shortages or
surpluses.
There are three major
steps to forecasting:
1. Forecasting the demand
for labor
2. Determining labor supply
3. Determining labor
surpluses and shortages

HUMAN RESOURCE PLANNING
The process of analyzing and identifying the need for and
availability of Human Resources so that the Organization
can meet its objectives.
The Process of determining an Organization’s human
resources needs.
Or

PURPOSE OF HR PLANNING
To maximize the use of Human Resources and
ensure their ongoing development.
To secure the Production Capacity required to
support Organizational
objectives.
2
To synchronize human resources activities
with the organizational objectives.
3
To increase the organization’s productivity.4
1

HR PLANNING PROCESS
HR Strategies &
Plans
Organizational
Objectives &
Strategies
Scanning the
External
Environment
Analyze Internal
inventory of HR
Capabilities
Forecasting
Organizational
Need for People
Survey of People
Available

a.LINKING ORGANIZATIONAL STRATEGY
TO THE EMPLOYMENT PLANNING
Determining what business
in the organization will be
in.
Mission
Setting goals and ObjectivesObjective and Goal
Determining how goals and
objectives will be attained
Strategy
Determining what jobs need to
be done and by whom
Structure
Matching skills, knowledge, and
abilities to required jobs
People

HUMAN RESOUCE
PLANNING PROCESS
Process of studying the environment of the organization to
pinpoint opportunities and threats.
b.ENVIRONMENTAL SCANNING:

HUMAN RESOUCE
PLANNING PROCESS Cont . . .
c.Internal Assessment of the Organizational Workforce :
Analyzing the jobs that will need to be done and the skills of people
currently available to do them is the next part of HR planning.
C. Internal Assessment
of the Organizational
Workforce
i. Auditing Jobs and
Skills
ii. Organizational
Capabilities Inventory

HUMAN RESOUCE
D.Auditing Jobs and Skills :
Following questions are addressed during internal assessment
 What jobs exist now?
 How essential is each job?
 How many individuals are performing each job?
 What jobs will be needed in future?

E.Organizational Capabilities Inventory:
HUMAN RESOUCE
By Utilizing different databases in an HRIS ,it is possible to identify the
employees SKA’S. planners can use these inventories to determine long
term needs for staffing and HR development.
 Human Resource Information Systems (HRIS):
Database systems containing the records and qualifications of each
employee that can be accessed to facilitate employment planning
decisions.

Paper Bag Activity
 You are required to bring following things for this activity:

 a. 1 stapler and staple pins

 b.     1 scissor

 c.      1 roll of cello tape ( 3/4th or 1 inch width)

 d.     1 ruler (12 inch and preferably steel)

 e.     1 pen

 f.       Old newspapers

 g.     String for making holding space (can be colourful also or can be of jute) - 2 per bag (around 12 inches
each)

 h.     punch machine

 i.        card paper / ivory sheet - 2- A-4 size.

Chapter 4 60

Job Analysis
 Determining and reporting information on the
nature of a job:
 Tasks comprising the job; and knowledge, skills, and
abilities (KSAs), and responsibilities required of
jobholder.
 End Product: a written Job Description.
4-62

Job Analysis
 Job and its requirements (not
characteristics of person currently holding the
job) are studied.
 Job Analysis is the beginning point of many
HR functions.
4-63

Job Analysis: Influencing HR Activities
 Job Definition – JA results in description of
duties and responsibilities of job.
 Job Redesign – JA often indicates when a job
needs to be redesigned.
4-64

Job Analysis: Influencing HR Activities
 Recruitment
 Selection and Placement
 Orientation
 Career Counseling
 Training
 Employee Safety
 Performance Appraisal
 Compensation
4-65

Product of Job Analysis
 1. Job Description
 2. Job Specification

1. Job Description –
Written summary of nature and
requirements of a job.
4-67

Job Description Contents
 Date written
 Job Status
 Position Title
 Job Summary
 List of Duties and Responsibilities
4-68

Job Description Contents (continued)
 Supervision – Received & Exercised
 Principles Contacts
 Required Meetings and Reports
 Career Mobility
 Competency Requirements**
 Education and Experience Required** 4-69

2. Job Specification – Competency, educational, and
experience requirements; also known as
“KSAs”
 Knowledge
 Skills
 Abilities
4-70

Job Analysis Methods – 1. Observation
 Simple JA method; used independently or
combined with other JA methods.
 Motion Study (Methods Study)
 Time Study
 Work Sampling
4-71

Contemporary issues in Job Design
Chapter 4 72

Contemporary issues in Job Design
 As we know, job design is a systematic organization of job-related
tasks, responsibilities, functions and duties. It is a continuous process
of integration of content related to job in order to achieve certain
objectives.
 The process plays a vital role as it affects the productivity of
employees and organizations. However, there are a number of
existing issues emerged recently while designing the jobs in
organizations. These are alternative work patterns that are equally
effective in handling organization’s functions.
Chapter 4 73

Comtemprory Issues in Job Designing
 Job Sharing:
 Flexi-Working Hours
 Technostress:
 Task Revision
Chapter 4 74

 Telecommuting or work from home is considered as the best alternative of working
from the actual office.
 The concept of virtual office is gaining more and more popularity because of ease
and convenience associated with it. By using computer networks, fax machines,
telephones and internet connection, employees can communicate and perform the
job from home.
 It eliminates the need of coming to office everyday and offers employees the
convenience to work at the comfort of their home.
Chapter 4 75

 Job Sharing:
 It is the second most preferable alternative of traditional working
styles where two or more individuals share the responsibilities of a
full time job.
 They divide the tasks, responsibilities and compensation according to
their mutual consent.
 This option is generally used by women who are on maternity leave
or have family and kids to look after but want to continue their job.
 These days, organizations are open to this kind of working style
where two or more individuals can share a job.
76

 Flexi-Working Hours:
 These days, organizations allow their employees to work according to the timings
that suit them best. There are 3-4 working schedules and individuals can choose
any one of them depending upon their availability.
 Employees can work in early hours as well as night hours. This is good for those
individuals who have colleges or some other engagements during the day or
specific hours of the day.
 The best part is that unlike telecommuting, flexi-timings give them chance to
communicate with other employees too.
Chapter 4 77

 Companies these days allow their employees to work
on alternate months or seasons.
 Though the concept is not that common in India but can
be seen in European and American world of work.
 They also have the option of working two to three full
days and can relax after that.
Chapter 4 78

 Technostress:
 Technostress is the latest technology to keep a check
on employees’ performance even when they choose to
work from home.
 Because of the introduction of new machines, there
performance can be electronically monitored even
when they are not aware of it.
Chapter 4 79

 Task Revision:
 Task revision is nothing but modification of existing
work design by reducing or adding the new job duties
and responsibilities to a specific job.
Chapter 4 80

Methods of Collecting Job Data
 Questionnaire:
 Questionnaire method of job data collection is
desirable especially in the following two situa-
tions:
Chapter 4 81

 Checklists:
 The checklist method of job data collection differs from the
questionnaire method in the sense that it contains a few subjective
questions in the form of yes or no. The job holder is asked to tick the
questions that are related to his/her job. Checklist can be prepared
on the basis of job informa-tion obtained from various sources such
as supervisors, industrial engineers, and other people who are
familiar with the particular job.
Chapter 4 82

 Critical Incidents:
 This method is based on the job holder’s past experiences
on the job. They are asked to recapitu-late and describe the
past incidents related to their jobs. The incidents so
reported by the job holders are, then, classified into various
categories and analysed in detail. Yes, the job analyst
requires a high degree of skill to analyse the incidents
appropriately described by the job holders. However, this
method is also time-consuming one.
Chapter 4 83

 Diaries or Log Records:
 In this method, the job holder is asked to maintain a diary
recording in detail the job-related activities each day. If
done judiciously, this method provides accurate and
comprehensive information about the job. This overcomes
memory lapses on the part of the job holder. As recording
of activities may spread over several days, the method,
thus, becomes time-consuming one.
Chapter 4 84

 Technical Conference Method:
 In this method, a conference is organised for the supervisors who
possess extensive knowledge about job. They deliberate on various
aspects of the job. The job analyst obtains job information from the
discussion held among these experts/supervisors. The method
consumes less amount of time. However, the main drawback of this
method is that it lacks accuracy and authenticity as the actual job
holders are not involved in collecting job information.
Chapter 4 85

The problems that may crop up while conducting job
analysis are:
 1. Lack of support from the top management.
 2. Relying on one source and method of data collection.
 3. Non-trained and non-motivated job holders who are the
actual source of job data.
 4. Distorted information/data provided by the respondents
i.e., the job holders because of non- preparedness on their
part.
Chapter 4 86

JOB DESCRIPTION (JD)
 Is an organized factual statement of job contents in the
form of duties and responsibilities of a specific job.
 The preparation of job description is very important
before a vacancy is advertised.
 It tells in brief the nature and type of job.

Job Description includes
 Title/ Designation of job and location in the concern.
 The nature of duties and operations to be performed in that job.
 The nature of authority- responsibility relationships.
 Necessary qualifications that are required for job.
 Relationship of that job with other jobs in a concern.
 The provision of physical and working condition or the work
environment required in performance of that job.

Advantages of Job Description
 It helps the supervisors in assigning work to the
subordinates so that he can guide and monitor their
performances.
 It helps in recruitment and selection procedures.
 It assists in manpower planning.
 It is also helpful in performance appraisal.
 It is helpful in job evaluation in order to decide about
rate of remuneration for a specific job.
 It also helps in chalking out training and development
programmes.

JOB SPECIFICATION
 Is a statement which tells us minimum acceptable
human qualities which helps to perform a job.
 Job specification translates the job description into
human qualifications so that a job can be performed in
a better manner.
 Job specification helps in hiring an appropriate person
for an appropriate position.

Contents of Job Specification
 Job title and designation
 Educational qualifications for that title
 Physical and other related attributes
 Physique and mental health
 Special attributes and abilities
 Maturity and dependability
 Relationship of that job with other jobs in a concern.

Advantages of Job Specification
 It is helpful in preliminary screening in the selection
procedure.
 It helps in giving due justification to each job.
 It also helps in designing training and development
programmes.
 It helps the supervisors for counseling and monitoring
performance of employees.
 It helps in job evaluation.
 It helps the management to take decisions regarding
promotion, transfers and giving extra benefits to the
employees.

Lastly -------Definitions
 Job analysis - systematic process of determining the
skills, duties, and knowledge required for performing
jobs in an organization
 Job description – document providing information
regarding tasks, duties, and responsibilities of job
 Job specification – minimum qualifications to perform
a particular job

Tasks Responsibilities Duties
Job
Analysis
Job Descriptions
Job Specifications
Knowledge Skills Abilities
Human Resource Planning
Recruitment
Selection
Training and Development
Performance Appraisal
Compensation and Benefits
Safety and Health
Employee and Labor
Relations
Legal Considerations
Job Analysis for Teams
Job Analysis: A Basic Human Resource Management Tool

HR Processes – An Employee Life Cycle

Routine HR Functions
 Manpower planning
 Recruitment and Selection
 Training & Development
 Appraisals – Performance Management
 Transfers / Promotions
 Compensation and Benefits

HR Process Mapping
Business
Planning
HR Policy HR
Planning
Recruitment
Selection
Performance
Management
Compensation
Management
Talent
Management
Training
Development
HR Systems
Data Mgmt
Employee
Relations
Occupational
Health and Safety

Non Routine HR Functions
 Culture Management
 Change Management
 Cross Cultural Issue Management
 HR Audit
 HR Accounting
 Outsourcing of HR
 VRS / Existing Employee Management / Succession
Planning

 Recruitment: Overall process of defining jobs
profiles and inviting applicants.
 Selection: Specific process of narrowing the
focus and selecting the perfect fit
Definitions

Manpower Planning
 Business Needs
 Financial Feasibility
 Future Plans
 Brand Name

Manpower Planning
 Why does the position exist?
 Temporary Replacement
 Permanent Replacement
 Creation of new position

Manpower Planning
 Do we need to review the position?
 Current and Ongoing need
 Sufficient budget
 Is the position description current
 Appropriate current level
 Is a full time employee required?

Manpower Planning
 What about existing staff?
 Do we have a succession plan for the replacement?
 Does the vacancy create career development
opportunities for existing people?

Recruitment and Selection process
 Business Plan
 Related HR Plan
 Competencies
 People
 Compensation and Benefits
 Numbers
 Current : Budgeted and Actual
 Future : Short Term and Long Term
 Three Conditions
 Current = Future
 Maintenance B = A
 Vacancy Filling B > A
 Current > Future
 Redundancy Planning
 Current < Future
 Recruitment Plan

 Recruitment Plan
 Position Description/Specifications
 Person Specifications
 Method of Recruitment
 Internal
 Reference/Promotions/Transfers
 External
 Advertisement
 Where to advertise
 Writing an advertisement
 Consultants
 Retainer
 Multiple
 Internet
 Receiving Applications and Screening/Filing

 Screening /Short-listing
 Coding
 Computer aided screening
 Selection Tools
 Written Tests
 Group Discussions
 Interviews
 Assessment Centres
 Reference Checks
 Offer
 Joining

Process Key Parameters
 Process must be
 Equitable
 Objective
 Open to scrutiny
 Transparent
 Merit based
 Confidential

Common Hiring Mistakes
 Relying on an interview to evaluate a candidate
 Using successful people as model
 Using too many criteria
 Evaluating”personality” not job skills
 Using yourself as an example
 Not using statistically validated data

 An objective is a simple statement of an end result to
be achieved within a specified time frame.
 It should be short, clear and specific.
 It can also be in the form of an activity as it may not
always be possible to quantify the end results.
Objective setting

 Gives direction to job.
 Helps focus on important job areas.
 Assists review and change in job emphasis.
 Provides a basis for appraisal, counselling and
feedback.
 Increases mutual job understanding with superior.
Why objective setting?

 Are significantly important areas of job.
 When performed well, improves overall results.
 Are maximum payoff job areas.
 Represent the work which account for 80% of results.
Objectives

 Targets – are specific conditions to be
achieved/indicates how much of what and by when
 Activities – action steps which lead to the end results /
used when targets are not quantifiable / indicate what
by when
Objectives

 What is the job ?
 What are the end results expected ?
 What policies / procedures / work methods are impeding
performance ?
 What changes are needed for better results ?
 How can work assignments be regrouped/altered to improve
schedule ?
 What problems need to be overcome next year ?
Process of Goal Setting

Objectives vs targets
 Focus on imp. Areas
 Related to job description
 Signposts
 Direction of work
 Optimum number 6
 Measures imp. Results
 Related to objectives
 Milestones/Pathways
 Specific condition
 One or more for each
objective

 Observable
 Basis for appraisal
 Jointly evolved
 Extra effort
 Clear/consistent with dept. objective
 Time bound
 Initiative
 Verifiable
 End result- emphasis on
 Satisfying
Criteria for objectives

 S - Specific
 M - Measurable
 A - Attainable
 R - Relevant
 T - Time-bound
Objectives

 Establishing specific goals to support stated purpose.
 Determining the importance of these goals.
 Making plans for action.
 Arriving at performance standards and measurement
criteria.
 Stating anticipated problems.
Process

 Weighing the resources required to carry out the
planned action.
 Providing for interaction of organization and individual
goals.
 Following up with actual performance measurement
and evaluation.
Process…

HRs role in Performance Management
 Delivering time-lines
 Ensuring timely adherence
 Auditing the objectives jointly with line managers
 Ensuring objectives are in line with organisational goals
 Requesting modification if required

Competency
 It is derived from the Latin word ‘Competere’, which
means to be suitable.
 The concept was originally developed in Psychology
denoting Individual’s ability to respond to demand placed
on them by the environment.

Competencies defined
 A collection of characteristics (i.e. skills, knowledge and self-concept, traits,
behaviour, motivation, etc.), that enables us to successfully complete a
given task.
Self-conceptSelf-concept
(Attitude)(Attitude)
SkillsSkills KnowledgeKnowledge

Competencies in the Corporate World
 Communication
 Critical Thinking
 Ethics / Social Responsibility
 Information Technology
 Interpersonal Diversity
 Leadership
 Managing Change
 Self-managed Learning
 Teamwork
 Technical know-how

Emotional Competency Framework
Personal Competence Social Competence
Self Awareness:
Knowledge of one’s self-concept
and values
Empathy:
Awareness of others’ feelings and
emotions
Self Regulation:
Management of one’s impulses
and emotions
Social Skills:
Adeptness at inducing desired
responses in others
Motivation:
Self-guidance and direction
* from Working With Emotional Intelligence, by Daniel Goleman

Competency Classification
Individual Organisation
Social Behavioural
Leadership
Generic competencies
Organisational
Cultural
Technical Functional / operational
knowledge
Skill knowledge
Threshold competencies
Core competencies
Corporate competencies
Distinctive competencies

Why use competencies
 Competencies
 help individuals and organisations to improve their
performance and deliver results
 can be quantified and communicated
 can be taught, learned, measured and monitored

Benefits of competency-modeling
 Integrates fragmented management and practices
 Links individual or group performance to strategic direction
 Helps develop high value activities for the organisation
 Focusing on what people do, not what they are
 Leads to organisational flexibility and stability
 Leads to competitive advantage
 Is participatory and involving
 Is objective; therefore, can be geared to possible change in business future
and to ensure relevance

Benefits of competency-modeling – HR Delivery
 Matching of Individuals and Jobs
 Employee Selection
 Training and Development
 Professional and Personal Development
 Performance Measurement
 Succession Planning

Who Identifies competencies?
 Competencies can be identified by one of more of the following category of
people:
 Experts
 HR Specialists
 Job analysts
 Psychologists
 Industrial Engineers etc.
in consultation with: Line Managers, Current & Past Role holders,
Supervising Seniors, Reporting and Reviewing Officers, Internal Customers,
Subordinates of the role holders and Other role set members of the role
(those who have expectations from the role holder and who interact with
him/her).

What Methodology is used?
 The following methods are used in combination for competency
mapping:
 Interviews
 Group work
 Task Forces
 Task Analysis workshops
 Questionnaire
 Use of Job descriptions
 Performance Appraisal Formats etc.

How are they Identified?
 The process of identification is not very complex. One of the
methods is given below:
 1. Simply ask each person who is currently performing the role
to list the tasks to be performed by him one by one, and identify
the Knowledge, Attitudes, and Skills required to perform each of
these.
 Consolidate the list.
 Present it to a role set group or a special task force constituted
for that role.
 Edit and Finalize.

What Language to Use?
 Use Technical language for technical competencies. For
example: knowledge of hydraulics.
 Use business language for business competencies. Example:
Knowledge of markets for watch business or Strategic thinking.
 Use your own language or standard terms for Behavior
competencies. Example: Ability to Negotiate, Interpersonal
sensitivity, Sales techniques. Too technical and conceptual
knowledge align to the organization and people may create
more problems than help

HRD Audit
 HRD audit is a comprehensive evaluation of the current HRD
strategies, structure, systems, styles and skills in the context of
the short- and long-terms business plans of a company. It
attempts to find out the future HRD needs of the company after
assessing the current HRD activities and inputs and thus
proving to be an effective tool for the organization development
process.

How is Human Resource Analysis Done?
 Human Resource Audit
 Purpose:
 To identify the size, skills and structure surrounding
current employees and
 to identify future human resource needs of the
organization
 Question Answered:
Are the human resources a strength or a
weakness?

The Audit: Principles
 Obtain some basic information on the people and
policies involved in the organization
 Explore in detail the role and contribution of the human
resources management function in the development of
strategy

The Audit: Contents
 People in the Organization
 Role and Contribution of HR strategy

HR Audit: People in the organization
 Employee numbers and turnover
 Organization structure
 Structures for controlling the
organization
 Use of special teams, e.g. for
Innovation
 Level of skills and capabilities
required
 Morale and rewards
 Employee and industrial
relations
 Selection, training and development
 Staffing levels
 Capital investment/employee
 Role of quality and personal service
in delivering the products or services
 of the organization
 Role of professional advice in
delivering the product or service

Role & Contribution of HR Strategy
 Relationship with strategy
 Key characteristics of HR strategy
 Consistency of strategy across different levels
 Responsiveness of HR strategy in leading change in
the organization
 Role of HR strategy in leading change in the
organization
 Monitoring and review of HR strategy
 Time horizon for operation of HR strategy

What the Audit Achieves
 Provides information that is useful in deciding how
feasible a strategy is
 Identifies any human resource “gaps” (human
resources necessary for a proposed strategy minus the
current state of human resources)
 Allows the organization to “benchmark” their
performance against other organizations (benchmark is
a process of comparison)

Human Resources as a CSF
 Critical Success Factor (CSF) = a reason why one
organization is superior to another
 HR can be a CSF if employees have unique skills

The HR audit is based on the following premise
 The Vision and Mission of the Organization:
 The Audit consultants are able to formulate their strategies
based on these objectives. They also analyze the
competencies that the organization will need to achieve
these targets whether long term or short term.
 The consultant breaks down these organization level
competencies to individual skills to be developed at various
levels. These competencies may deal with various aspects
like technical, conceptual or people management skills

Current competencies available in the company
 This is generally done through examining the details of the
employees like their qualifications, job descriptions, training
undertaken, thus basically trying to identify the skill level of the
employees at various levels.
 Organization process documents like performance appraisal
feedback and training need identification provide additional
information on this.
 Departmental heads and other employees provide insights
into the competency and other skill requirements.

Available HRD systems that help build the competency levels required
achieving the long-term goals or the short-term goals.
 These provide details for the HRD Systems maturity
score in the HR scorecard.
 The existing HR processes tell the auditors the maturity
level of the process that is studied in detail to ensure
the availability, utilization and development of skills in
the organization.

Effectiveness of the HR systems and process
 The presence of the HRD systems is not sufficient to achieve
success. These processes also need to be efficient. Example:
An organization may have an excellent Exit interview system in
place. But if the feedbacks from the Exit interviews are not
utilized for improving organization systems then the Exit
interview process is of no use and becomes redundant over a
period of time.
 The exit interview should give inputs for training needs or
improving people management skills or compensation policies
in some cases.

Ability of the existing HR structure in managing the HR
process and policies
 The consultants identify whether the current HR
structure is sufficient to handle the pressure of the
future needs of the company. To implement any OD
intervention or handle any Change management
exercise the HR task force has to be at its best with all
the required tools of competencies and skills.

Leadership styles of the Management team
 The senior manager leadership style is very important
for any change process and implementing the HR
audit. It is necessary that their management style
facilitate in creating a learning organization. The
leadership styles define the culture of the organization

The HR audit process
 Auditing a human resource department is a systematic
process that involves at least two steps:
 Gathering information to determine compliance, effectiveness, costs
and efficiencies.
 Evaluating the information and preparing a written report, with an
action plan based on exposures, priorities and a timeline for
instituting changes. In order to reduce exposure to legal liability,
some changes will need to be implemented immediately, while others
can be completed in three to six months.

Immediate benefits of an HR audit
 Very typically, small to medium-size companies realize
almost instant cost savings once an audit is complete
and changes are implemented. For example:
 Correcting benefit premium errors and overpayments can
generate many thousands of dollars in savings.
 Examining the effectiveness of recruitment

 A small or medium-size firm also may benefit from using an HR
audit to:
 Study retention and turnover, employing a neutral party to solicit honest
feedback from employees, and allowing the company to develop an
action plan.
 Examine the company's foundation for its compensation philosophies
and develop an objective method of grading jobs, with new ranges that
are market-competitive and internally equitable.
 Improve employee communication and ensure that the HR department is
accessible.
 Identify opportunities to outsource areas within human resources that
offer more value to the company

 How many managers feel that “appreciating others” is a
major part of their job ?
Very FEW
Recognition Jeopardy

Recognition Jeopardy
 What causes you the most dissatisfaction at work ?
Lack of appreciation

A Challenging Situation
 Employee faith and loyalty in organizations dropping!
 40% of employees feel unappreciated
 1 in 3 workers are unhappy and not engaged
 “not feeling appreciated” may be the #1 reason people leave a
job
 61% of employees received no meaningful praise in the past
year

78% of employees feel it is very important to be
recognized by their manager
“I now perceive one immense omission in my
psychology – the deepest principle of human nature is the
craving to be appreciated.”
William James
“I can live for two months on a good compliment!”
Mark
Twain
Who needs appreciation?

Informal Recognition: Building A Culture
 Understand organizational goals/values
 Determine the goals of the recognition initiative
 Know your staff better
 “How to do it”– every day
 Look for recognition opportunities
 “Thanks”, praise and feedback

Organisation’s Goals / Values
 What values and goals does the organization want to promote?
 Relative importance?
 Relative impact?
 What specific values and goals will be addressed with
recognition efforts?

Potential Initiative Goals
Create a positive work environment 80%
Create a culture 76%
Motivate high performance 75%
Reinforce desired behaviors 75%
Increase morale 71%
Support organizational values/goals 66%
Increase retention 51%
Encourage loyalty 40%
Others – communication, teambuilding, focus
NAER 2003 Recognition Survey

Recognition Follies
better people skills technical achievements
If we want Why do we often recognize
innovative thinking
employee development
Remember you get what you recognize!
“no mistakes”
tight control over
resources

Potential Benefits
 Positive workplace…
 Support of organization’s
goals…
 Increased retention
 Higher performance
 More innovation/better
economics

Potential Benefits
 Positive workplace…
 Support organization’s
goals…
 Increased retention
 Higher performance
 More innovation/better
economics
 Increased self-esteem
 An employee who feels
more valued
 A more committed,
engaged analyst
 Strengthened bond
between the analyst and
manager
 A more focused manager

Know Your Analysts
 What are their professional and personal goals?
 What do they value?
 Fit the recognition to their values
 How do they want to be recognized?

Getting to know what your people want
 Challenging, interesting work
 A collegial work environment
 Work that supports growth and personal achievement
 Good communications and supportive relationships
 Recognition for new promising ideas
 Support for risk taking
 Clearly integrated technical/business goals

“Good Recognition”
 As immediate as possible
 Specific
 What did you see
 How did it impact the situation or the organization
 In a form meaningful to the employee
 Provided in a way meaningful to the employee
 Recognizes work in progress/efforts as well
 Recognizes everyone including high performers

Effective Ways to Recognize
 “Thanks!” including feedback
 Employee involvement
 Responsibility and authority
 Employee development
 The work itself
 Attention
 Professional recognition

Highly Valued Forms of Recognition
4. More authority
3. More responsibility
2. Personal praise
1. Manager’s support and involvement

Employee Involvement
 Ask for their opinions and ideas
 Implement their ideas whenever possible
 Include them in planning and decision making
 Provide as much information as possible
 Let them represent the lab
 Suggest participation on special teams and committees

Responsibility/Authority
 More freedom to work independently
 More opportunities to self-manage
 Higher levels of responsibility
 Empowerment to make more decisions
 Ability/responsibility to improve processes

Employee Development
 Provide opportunities to fulfill their own goals – not just follow
organizational dictates
 Freedom to work more independently
 Formal training opportunities
 In or out-of-house
 Let them use the new skills immediately
 Let them brief others
 Recognize individual talents when assigning work

(ASAP)3
= Effective Praising
 As soon
 As sincere
 As specific
 As personal
 As positive
 As proactive
© 1997 by Bob Nelson
(scientific version of ASAP-Cubed)

Recognition Using Feedback
 Feedback is a powerful form of praise
 Addresses important values of challenging work and excellent
performance
 Shows your concern and interest
 Positive AND constructive messages
 “…can’t have one without the other”
 Enhances intrinsic motivation
 A positive cycle of excellent work leading to higher motivation from the
work leading to higher performance….

ALMA Roundtable – Insights
 “Thanks” is highly effective if reinforced over time
 Recognition must be sincere, timely, appropriate
 Tailor the recognition/reward
 The more personal the better
 Show appreciation in various ways
 Personal notes
 Pass along or post messages of appreciation
 Post successes
 “Recognition/rewards are not motivators, but they keep motivated people
from becoming de-motivated”

Potential Obstacles?
 Managerial behavior
 Mismatch with environment/culture
 Expectancy/reinforcement theory
 Recognizing the wrong behavior or value
 Intrinsic motivation – the Pareto 20%

Measuring Success
1. Response to surveys
2. Performance development meetings
3. Retention rates
4. Exit interviews
#3 and #4 – highly accurate data, too late and likely
“NO”
ALMA Roundtable 2005

Why Do Rewards Fail?
 Often punish/undermine relationships
 Undermine interest in the task itself
 Reduce risk taking
 Undermine attempts to solve problems
Alfie Kohn
Out with carrot & stick psychology!

Choice, Collaboration & Content
 Choice – participative management style
 Collaboration – opportunity to interact with analysts of similar skills
and work ethic
 Content
 What work they perform
 How they perform their work
 Environment
These suggestions on recognition directly address Kohn’s
concerns, fit with his suggestions and should lead to more-satisfied
analysts.

A Closing Thought
“…the best success we can have in getting managers and
supervisors to recognize employees more often is less a
function of awareness of the importance of recognition and the
skills of providing recognition and more a function of getting
managers to personally experience the power of recognition.”
Bob Nelson

HUMAN RESOURCE PLANNING

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