1

M ISSION M ANAGEMENT

Human Resource
Planning
Notes
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CONTENTS
Module Course Description
Module 1 Introduction: Definition and concept of HRP, benefits, process.
HRP components, Macro Level manpower planning and Labor
market analysis- Organizational Human Resource Planning.
Module 2 HR planning and corporate strategies: HR planning as a
strategic process- employees as resources- goal attainment, linking
HR process to strategy, involvement in strategic planning process,
strategic Hr planning model.
Module 3 Job analysis: meaning and definition, job analysis process,
techniques of job analysis, methods and practice of job analysis,
competency-based approach.
Module 4 HR Forecasting: Forecasting Manpower Needs, the Forecasting
process, forecasting staffing requirements. Models and techniques
of manpower demand and supply forecasting. Index analysis-
expert forecasts- Delphi technique- nominal group technique- HR
budget and staffing table.
Module 5 Recruitment, Employment tests and Selection: Internal and
External Sources, recruitment Evaluation. Concepts of testing,
types of tests, Executive Talent Search. Significance of Selection,
Scientific Selection, Selection process. Evaluation of selection
system.
Module 6 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.
Module 7 Career planning and succession management: definitions,
concepts, stages of career development process and organizational
HR policies, Succession management process and management
development programmes, objectives of MDP’s, Job rotation,
Auditing MDP’s management development methods, challenges
of succession management, Replacement analysis.

Module 8 HR Planning and Selection in the Modern Business

environment: Changing perspective in the field of recruitment
and selection in the information age: e-recruitment and selection.
E-recruitment, e-selection, outsourcing.
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Module- 1
Introduction

Meaning and Definition

Human resource planning deals with anticipating staff requirements, taking into account current
and likely future demand for skills, and the probable availability for individuals with such skills.
It is the process by which a firm determines how a management should move from its current
manpower position to its desired manpower position.

According to Robbins and Coulter, “Human resource planning is the process by which
management ensures that it has the right number and kind of people in the places, and at the right
times, who are capable of effectively and efficiently completing those tasks that will help the
organization to achieve its overall objectives.”

In words of Coleman Bruce, “Manpower planning is the process of determining manpower

requirements and the means for meeting these requirements in order to carry out the integrated
plans of the organizations.”

HRP involves three steps: Assessing current human resource

Assessing future human resource
Developing programme to meet future human resource needs

Characteristics of Human Resource Planning

• HRP is a strategy
• It deals with policies.
• Helps in forecasting.
• Continuous process
• Fulfills human resource gap.
• Recruitment and selection procedure
• Concerned with future need of manpower
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• Utilization of human resources

• It represents system approach

Benefits of Human Resource Planning

• Improves flow of individuals.

• Reduce shocks and disturbances.
• Avoid industrial unrest.
• Satisfy developmental needs.
• Integrate individual and organizational needs.
• Shows future staffing needs.
• Helpful in various plans.

Importance of Human Resource Planning

• Flow of Individuals
• Critical Managerial Function
• To avoid Industrial Unrest
• To satisfy Developmental Needs
• To integrate Individual and Organizational Needs
• Shows Future Staffing needs

Process of / Steps in HRP

Human resource planning consists of following steps or areas of activity:

1. Current assessment / corporate analysis:
2. Demand forecasting
3. Supply forecasting
4. Determining human resource requirements / manpower gaps
5. Manpower planning and developing future programme
6. Monitoring and control
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Problems and Limitations of Human Resource Planning

• Inaccuracy
• Resistance
• Uncertainties
• Lack of top management support
• Time and expense
• Unbalanced focused

Human Resource Planning Components

With an understanding of these components of an HR management system, business

owners and managers can effectively structure their business processes.
• Demand
• Supply
• Organizational culture
• Planning for change
• Training and development
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• Health and safety

• Recruitment and retention

Types of Manpower planning

On the basis of level On the basis of period

Macro Micro Short Medium Long

(National level) (Industrial level)

• Macro/ National level: Generally government at the centre plan for human resources at
the national level. It forecasts the demand for and supply of human resources, for the
nation.
Need of HRP at Macro Level:
HRP is mandatory part of every organization’s annual planning process. Every
organization that plans for its business goals for the year also plans how it will go about
achieving them, and therein the planning for the human resource.
Major reasons for the emphasis on HRP at macro level include:
a) Employment unemployment situation
b) Technological changes
c) Organizational changes
d) Demographic changes
e) Skill shortages
f) Governmental influences
g) Legislative controls
h) Impact of pressure groups
i) Systems concept
j) Lead time
• Micro/ Industry level: Manpower needs of a particular industry like cement, textile,
chemical, are predicted taking into account the output/ operational level of that particular
industry.
• Short term manpower planning: These are made for a short time i.e. for a period of not
more than two years.
• Long term manpower planning: It is concerned with fulfilling future vacancies, rather
than matching the present incumbents to present jobs.
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Labor market analysis

Labor market is defined as the area within which employers compete for labor. In
general, labor market analysis is the process of:-
1. Identifying the appropriate labor market for various types of positions.
2. Surveying the market to determine salaries that are being paid for like positions.
3. Identifying market trends such as: ancillary pay, and merit and pay practices.
4. Establishing, adjusting, and/or recommending salary changes and/or structures for staff
positions.
5. Consulting with management on their workforce needs.

Labor market analysis is a five-part process to:

1) Identify the area
2) Conduct or participate in market surveys
3) Work with management to validate the market areas
4) Identify market trends
5) Establish, adjust and/or recommend salary structures.

Labor Turnover:- It may be defined as “the rate change in the working staff of a concern
during a definite period, commonly a month.”

Labor turnover= Number of employees leaving in a year *100

Average number of employees in a year
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MODULE 2
HR Planning and Corporate Strategies

Meaning and Definition of Strategy

The terms ‘strategy’ is derived from the Greek word strategos, which means generalship- the
actual direction of military force, as distinct from the policy governing its development.
In a broader sense, strategy is defined as the determination of the basic long-term objectives and
goals of an enterprise and the formulation of plans and acquisitions, allocation and utilization of
resources necessary to accomplish these goals.
According to George A. Steiner, “Strategy means deciding the basic mission of a company, the
objectives which it seeks to achieve and the policies governing the use of resources at the
disposal of the firm to achieve its objectives.”
Examples: Flipkart, which has been associated with online shopping, is entering

Elements of a Strategy

Any coherent strategy should have four important elements:-

• Goals
• Scope
• Competitive advantage
• Logic

Corporate and Business Strategy

Corporate strategy refers to decisions on what business to enter, what businesses to retain in
the portfolio and those to exit from. It specifically directs attention at how the corporate
office can add value to the diverse businesses in the portfolio so that their value as a part of
the corporation exceeds the value they would have as free-standing businesses.
Business strategy focuses on achieving competitive advantage on a sustained basis. There are
two generic routes to competitive advantage- through being the lowest cost producer, or
through differentiation and a price premium.

Porter Generic Strategy framework of relationship between Business strategy and HRP
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1) Cost Leadership Strategy

• Cost leadership strategy means selling the goods at the cheapest price in the
market.
• Some good examples of cost leaders in the market are: Wal-Mart,
australiawholesalers.com etc.
• Which sell relatively cheap products due to the advantage of bulk quantities at
wholesale prices.
• Examples of Cost Leadership- McDonald’s has been extremely successful
with this strategy by offering basic fast-food meals at low prices. They are
able to keep prices low through a division of labor that allows it to hire and
train inexperienced employees rather than trained cooks.

2) Differentiation strategy
• It’s an approach that a business takes to develop a unique product or service
that customers will find better than or in another way distinctive from
products or services offered by competitors.
• Differentiation strategy is a way for a business to distinguish itself from the
competition.
• Examples of Differentiation strategy- Steve Jobs said this about the
difference between Dell and Apple: Apple and Dell are the only ones in this
industry making money. They make it by being Wal-Mart. We make it by
innovation.

HR Planning as a Strategic Process/ Strategic

Manpower Planning
Concept of Strategic Human Resource/ Manpower Planning
Strategic Manpower planning is a dynamic proactive, ongoing process of systematically
attracting, identifying, developing, mentoring and retaining employees to support current and
future organizational goals.

Features of Strategic Human Resource Planning

i. Team approach
ii. Must have support of senior management
iii. Must have line management ownership
iv. Influence decision-makers
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Must be
Benefitsv.of Strategic HRtailored
Planningto each department’s needs and structure.

I. Encouragement of proactive rather than reactive behavior

II. Explicit communication of company goals
III. Stimulation of critical thinking and ongoing examination of assumptions
IV. Identification of gaps between current situation and future vision
V. Encouragement of Line Managers’ Participation
VI. Identification of HR Constraints and Opportunities
VII. Creation of common bonds

Challenges of Strategic HR Planning

I. Maintaining a competitive advantage

II. Reinforcing overall business strategy
III. Avoiding excessive concentration on Day-to-day problems
IV. Developing HR strategies suited to unique organizational features
V. Coping with the environment
VI. Securing management commitment
VII. Translating the strategic plan into action

Employees as Resources for Goal Attainment

Hamel and Prahalad, the creator of the concept of core competencies opined (assume) that it is
core strength that gives the competitive advantage or an edge to an organization.
A Core Competency is a unique capability in the organization that creates high value and that
differentiates the organization from its competition.

Human Resources as a Core Competency

Many organizations enhance its value in the business and create an edge by focusing on the
human resources. Organizations, which follow this principle, are as diverse as Federal Express,
Shoppers’ Stop, CNBC.
Ways How HR Becomes a Core Competency
Some ways that human resources become a core competency are through
A. Attracting and retaining employees with unique professional and technical capabilities
B. Investing in training and development of those employees, and
C. Compensating them in ways that keep them competitive with their counterparts in other
organizations.
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Resource Based Organizational Strategies (VRIS Framework)

Jay Barney developed a model that demonstrates that, for a resource to be the source of
sustained competitive advantage it must create Value (V) for the firm; it must be Rare (R); it
must be Inimitable (I); and it must be non-Substitutable (S).

VRIS Framework

Valuable Rare Inimitable Non Substitutable

Linking HR Process to Strategy

HR Professionals Role in Alignment
There are five ways in which HR professionals can enhance their ability to contribute to this
integration process:

A. HR professionals must spend more time and effort understanding the business
environment and the key strategic issues faced by the company.
B. HR professionals must get more involved in the nitty-gritty’s of the business, i.e., in
operational details and issues.
C. HR professionals must move towards taking an integrated look at the people in the
organization, bridging the gap between HR and IR(Industrial Relations).
D. HR professionals must see themselves as knowledge workers and facilitators of
knowledge flows within the organization.
E. HR professionals need to change from a support paradigm to a value creation paradigm.

Difficulty in Linking HR Process to Business Strategy

• Interactive Nature
• Pre- existing Practices
• Pre- existing Structures
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A Systematic Approach Linking HR Systems to Business Strategy

A pragmatic project approach is needed to align the human resource function and strategy with a
business plan. Such an approach includes six steps:

1. Establish the project

2. Clarify and assess
3. Set priorities
4. Benchmark and redesign
5. Realign and implement
6. Measure progress and impact

Strategic Planning
Strategic Planning can be defined as the process of identifying organizational objectives
and the actions needed to achieve those objectives. It involves analyzing such areas as finance,
marketing and even human sources to determine the capacities of the organization to meet its
objectives.

Involvement of HR in Strategic Planning Process

Reasons to Include HR in the Planning Process
• Selection and staffing
• Organizational Development
• Training and Development

How Human Resource Contribute to Strategic Planning (at Different Levels)

A strategic planning system, it is often argued, should possess a hierarchical structure that
reflects a “division of labor” in strategy formulation and implementation between three distinct
levels of the firm- the portfolio or corporate level, the business family or divisional level, and
the business or product/ market element level. At each of these three levels, management will
confront different (though interrelated) sets of strategic variables.
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Linking Business Planning and HR Planning

Planning level & Business Planning Process Link Human Resource Planning
Horizon Process
Strategic planning Corporate philosophy, value Issues analysis Analysis of issues raised by
(5 or more years) system, and policies; Goals external factors.
and objectives; Key success Employment demand
factors projection.
Manpower supply analysis
and projection.

Intermediate- range Organization evolution. Programming Forecasting total staffing

planning Programs required requirements level.
(3-5 years) implementing strategy. Forecasting number of
managers and key personnel.
Operational Planning Detailing of programs to Integrated Detailing of P/HR activities
(12 months) specify actions, control that are incorporated in the
responsibilities, cost-time requirements. one-year business plan.
schedule, and organizational
profitability
Activities planning Day-to-day and week-to-week Implementation P/HR day-to-day and week-
(daily and weekly) plans and work schedules actions to-week assignments in
decentralized throughout the support of the objectives and
company plans of the P/HR department.

Strategic Human Resource Planning Model

There is no single strategy to develop a human resource strategy. This following
approach identifies six steps in developing and HR strategy:

1) Setting the strategic direction

2) Designing the Human Resource Management System
3) Planning the total workforce
4) Generating the required human resources
5) Investing in human resource development and performance
6) Assessing and sustaining organizational competence and performance.
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Module 3
Job analysis

Meaning and Definition

Job analysis is the process of systematically analyzing the activities pertaining to each job. It is
designed to define the duties, responsibilities and accountability. It is the analysis of a particular
job. It studies and collects data relating to the operation of a work. It is just an accurate recording
of the activities involved.
According to Edwin B. Flippo,”Job analysis is the process of studying and collecting
information relating to the operations and responsibilities of a specific job.”
According to Decenzo and P. Robbins, “A Job analysis is a systematic exploration of the
activities within a job. It is a basic technical procedure, one that is used to define the duties,
responsibilities and accountabilities of a job.”

Characteristics of Job Analysis

Formal Dynamic

Pervasive Work Design

Components: Worker Analysis

• Job Description
• Job Specification
• Job Performance Standards

Purpose/ Uses/ Objectives of Job Analysis

1) To compile a detailed description of tasks.

2) To examine the knowledge, qualifications or employement standards, accountabilties and
other incumbent requirements.
3) To simplify the process and methods involved in job.
4) To find out the best method of the performance of the job.
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5) To appoint the best person to perform the job.

6) To take precautions against insecurity and accidents.
7) To collect facts required in training programmes.
8) To establish job and time standards.
9) To prepare labor charts, rules and labor contracts.

Components of Job Analysis

Job Role
Description Analysis

Job
Analysis

Job Performance Job

Standards Specification
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• Job Description: It implies objective listing of the job title, tasks, duties and
responsibilities involved in a job. It is written statement of what the job holder does, how
it is done, under what conditions it is done and why it is d one.
In the words of Flippo,”The first and immediate product of job analysis process is the
job description. It is descriptive in nature & constitutes a record of existing & pertinent
job facts.”
Contents of Job Description:
1. Job identification
2. Jon summary
3. Job duties and responsibilities
4. Relation to other jobs
5. Supervision
6. Machines tools and materials.
7. Working conditions
8. Hazards

Specimen of job description

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• Job Specification: Also known as employee specifications, a job specification is a

written statement of educational qualifications, specific qualities, level of experience,
physical, emotional, technical and communication skills required to perform a job,
responsibilities involved in a job and other unusual sensory demands. It also includes
general health, mental health, intelligence, aptitude, memory, judgment, leadership skills,
emotional ability, adaptability, flexibility, values and ethics, manners and creativity, etc.
Characteristics of Job Specification
a) Physical & demographic characteristics
b) Mental Aptitudes or psychological characteristics
c) Personal traits
d) Emotional characteristics
e) Social characteristics
Specimen of Job Specification
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Process of Job Analysis

Organizational Analysis

Select Representative Portions

Collect Data

Review Collected Data

Developing Job Description

Developing Job Specification

Maintaining and updating Job Description and Specification

Techniques of Job Analysis

TECHNIQUES
Job performance Direct Observation

Interview Questionnaires

Employee Log Conference of Experts

Critical Incidents Method Analysis

Psychographic Method Combination of Methods

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Position Analysis Questionnaire Motion study Method

• Motion Study Method: Motion study is a systematic way of determining the best
method of doing the work by scrutinizing the motions made by the worker or the
machine.
• Position Analysis Questionnaire: PAQ is a job analysis questionnaire that evaluates job
skill level and basic characteristics of applicants for a set match of employment
opportunity.
• Psychographic method: Psychographics is a qualitative methodology used to describe
consumers on psychological attributes.
• Critical Incidents: Critical incident method is a performance appraisal tool in which
analyses the behavior of employee in certain events in which either he performed very
well and the ones in which he could have done better.

Guidelines/ Criteria of a Well-Made Job Analysis

1. A job description/analysis must be up-to-date.
2. Provision should be made for periodic review of all jobs.
3. The title should be apt.
4. The summary should give an overview of what the job actually is.
5. Purposes & intended uses should be set out clearly.
6. Selection of the method should be related to the objectives of job analysis.
7. Job data should be reliable & accurate.

Approaches to Job Analysis

There are two approaches to job analysis, one focusing on tasks performed in the job, the other
on competencies needed for job performance.

1) Task-Based Job Analysis: - Task- based job analysis is the most common form and
focuses on the tasks, duties and responsibilities performed in a job. A task is a distinct,
identifiable work activity composed of motions, whereas a duty is a larger work segment
composed of several tasks that are performed by an individual.
2) Competency-Based Approach:-
Competency Based Approach is a HRM method that focuses on the skills and talents
needed to be able to perform a particular task to a certain standard. The method relies on
using a series of assessment tools that identify not only the technical skills a candidate
possesses, but his behavioral competencies as well.
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The approach can be valuable for:

• Developing performance standards
• Career management
• Appraising employees against these standards
• Training and development
• Recruitment

Steps in Competency- Based Approach/ Process

Define Organizational Culture

Define essential Job activities and responsibilities

Define technical competencies and skills required

Define behavioral competencies

Define competencies and behavioral indicators

❖ Two categories of competencies

Work Based Competencies Behavior Based Competencies

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Module 4
HR Forecasting

Forecasting Manpower Needs

Manpower Planning which is also called as Human Resource Planning consists of putting right
number of people, right kind of people at the right place, right time, doing the right things for
which they are suited for the achievement of goals of the organization.

Manpower Planning is a process of analyzing an organization’s human resource needs under

changing conditions & developing the activities necessary to satisfy these needs.

Forecasting Process

Determine purpose of Establish a time horizon Select a forecasting technique

Forecast

Monitor the Make the forecast Obtain clean and analyze

Forecast data

Forecasting Staffing Requirements

Human resources departments plan for future staffing requirements based on the
forecasting of positions the company must fill to meet future needs. Forecasts are based on the
estimated demand for products and services. Therefore, revenues are determined first and
staffing plans developed accordingly. Three possible areas to forecast are:-
1) Personnel Needs: - Trends analysis is used to review the past employment needs to
predict future needs.
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2) Present supply of Internal Candidates:-

Qualification Inventories Personnel Replacement

• List of employees employee’s present performance &

• Education the desire for promotion to additional
• Internal training positions based on performance, skills
• Special skills & experience.

3) Future supply of external candidates

4) Researching Internal & External Staffing Resources

Models & Technique of Manpower demand & supply forecasting

Demand Forecasting

Demand Forecasting

Means outside requirements means making an estimation in the

of a product or service. present for a future occurring event.

It is a technique for estimation of probable demand for a product or services in the future.
According to HRM, it is based on the analysis of past demand for the HR in the present market
conditions.
It is the process of estimating the requirement of different kinds of personnel in future.
The basis of manpower forecasts should be the annual budget and long term corporate plan
translated into activity levels for each function and department.

Techniques of Demand Forecasting

• Managerial Judgement
• Work Study Technique
• Statistical Technique
• Delphi Technique
• Computer Analysis
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1) Managerial Judgement
• The most typical method for smaller companies.
• In this method the managers simply sit down, think about their future work load
and how many people they need
• It adopts both the ‘bottom up’ and ‘top down’ approach.

2) Work Study Technique

• This technique can be used when it is possible to apply work measurement to
know how long operations should take and the amount of labor required.
• It is calculated in two ways:

Work load Analysis Work force Analysis

Experts find out sales forecasts, experts keep a sufficient margin

Work schedules & thus determine for absenteeism, labor turnover &
the manpower required for unit of idle time on the basis of past
product. Experience.

3) Statistical Technique
• It is the technique of using high speed computers and new mathematical
techniques.
• The main statistical tools are:
➢ Ratios and Trend analysis
➢ Regression analysis
➢ Bureks-Smith model
I. Ratios & Trends Analysis:
• Ratios, which are calculated for the basis of past data relating to number of employees.
• The data are collected in different levels.
• A future manpower requirement is calculated on the basis of established ratios.
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II. Regression Analysis:

• The technique is used to estimate the manpower requirements of an organization at a
future point of time.
• It is used when dependent and independent variables are functionally related to each
other.

III. Bureks- Smith Model:

• In this method a mathematical model developed for personnel forecasting-
En= (Lagg + G) 1/x
Y

Here,

En- it is estimated level of personnel demand in n planning period

Lagg- it is overall turnover or aggregate level of current business activity n rupees
G- Is the total growth in business activity anticipated through period n in terms of rupees
X- It is the average productivity improvement
Y- Is conversion figure relating today’s overall activity

4) Delphi Technique
The word ‘Delphi’ has come from Greek. This method calls for selection of panel of
experts either from within or outside the organization, whose comments are
crystallized from a series of questionnaire responses and then used as the basis to
forecast.
The steps of Delphi technique may be enumerated as follows:
i. To start with, it requires selection of a coordinator & a panel of experts
both within and outside the organization.
ii. The coordinator then circulates questions in writing to each such expert.
iii. The experts then write their observations.
iv. The coordinator then edits those observations & summaries.
v. On the basis of his summary, the coordinator then develops a new set of
questionnaire.
vi. Experts then answer such new set of questions.
vii. The coordinator repeats the process till he is able to synthesize from the
opinion of experts.

5) Computer Analysis
▪ MANPLAN was developed by General Electric to overcome human resource
modeling problems.
▪ This computer program needs for its forecast, asking such questions as:
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a) How many different product lines do you manufacture?

b) How many months does your forecast cover?

▪ Merit of MANPLAN- is that running the computer model is relatively

inexpensive.

QUANTITATIVE TOOLS FOR MANPOWER FORECASTS

1) Time series analysis

Time

Elements- Cyclical Effects

Random Seasonality
fluctuations
2) Moving Average Method
3) Analysis of Productivity & other ratios
4) Managerial Judgement

QUALITATIVE MODELS FOR BETTER MANAGERIAL

JUDGEMENT

1) Delphi Technique
2) Nominal Group Method-
Like Delphi Method, nominal group method also involves a panel of experts. However,
the major difference between the two is that while under Delphi Technique, experts are
not allowed to discuss among themselves, for assessing the questions; under nominal
group method, experts are given the opportunity to discuss among themselves. Under this
method, the coordinator assumes the experts to sit together to discuss their ideas &
records of such discussions are made on a flip chart. After this round table discussion on
ideas, experts are asked to rank their ideas according to their perceived priority.
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3) Analysis of Manpower supply-

• Wastage analysis- Wastage is severance from the organization which includes voluntary
retirement, normal retirement, resignations, deaths & dismissals.

Wastage analysis curve

4) Skill Inventories- For assessing effectively internal manpower supply, it is important for
an organization to maintain skills containing various information’s about individuals and
their suitability for different jobs.
5) Manpower Planning Models-

Manpower
System

Stocks Flows

Are the no. of staff in the system are recruitment, promotion,

at a given point of time wastage, transfers, demotion etc.

Stocks are divided into categories like

sex, age, length of service etc.

6) Markov Models- Hierarchical systems

In hierarchical systems, route for the employees, which is the promotion ladder, are well
defined. It means every employee elevates himself in the organization through a well
defined career path. All employees start in an org. at the bottom rung & climb up the
ladder one at the time. Any wastage is falling of the ladder.
The basic assumption of this model is that an employee in a particular grade or a status
group has a fixed chance of promotion in a given year, independent of vacancy.
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The central equation of this model is-

n(t+1) = n(t)P + R(t+1)r
Here,
n (t)= vector of stocks at a given time i.e. no. of employees in each status group
P= matrix of transition probabilities between each of status group
r= vector of probabilities of a recruit starting in particular status groups
R (t) = no. of recruits at time (t)

7) Renewal Models-
This model is issued to predict various flows in the org. when size of the stocks is fixed
in advance.

8) Optimization Model- (HR Budget)

This model combines to forecasting of manpower availability & the matching with
manpower availability and the matching with manpower requirement. Here, usually, a
finite horizon is chosen.
For ex.- goal programming. Here, no of goals are established which the decision maker
desires to achieves.

Supply Forecasting

❖ Supply Forecasting Methods

• Trend Analysis
• Competency Model
• Replacement Charts
• Staffing Table
• Succession Planning
• Flow Modeling/ Markov Analysis

Staffing Table

• A clear graphical view of all organizational jobs & the current no. employees at each job.
• Staffing tables are graphic representations of all organization jobs, along with the no. of
employees currently occupying those jobs & future employee requirements, which can be
derived from demand forecasts.
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• It presents a simple visual understanding of an organization’s staffing level within each

department and the organization as a whole.

STAFFING TABLE
ROLE Authority Responsibility Competency

Project Manager
System Engineer
System Analyze
Coordinator

Example:-
NAME PROJECT DEPT. ID HOURS ROLE

Matte Alpha 1 100.5 Developer

Mike Alpha 2 50.2 Tech Lead
Dave Beta 1 92.0 Architect
Yale Beta 1 190.0 Developer
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Module 5
Recruitment, Employment Tests and Selection

RECRUITMENT
Recruitment is the generating of applicants for specific positions. To recruit means to
enlist, replenish or reinforce. It is a process of stimulating the applicants to apply for a job in a
company. It brings together prospective employees & employer.

Recruitment is two- fold function-

a) To discover the sources of manpower to match job requirements & specifications

b) To attract an adequate no. of prospective employees to permit meaningful selection of the
required personnel.

According to Edwin B. Flippo, “Recruitment is the process of searching for prospective

employees and stimulating them to apply for jobs in the organization.’

According to Decenzo & Robbins, “Recruiting is the discovering of potential candidates for
actual or anticipated organizational vacancies.”

CHARACTERISTICS

An aspect of manpower planning Linking activity

Positive process Two-way affairs

Process of Activities Complex

Pervasive Locate sources of manpower

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Recruitment Process

Defining the job

Establishing the person profile

Making the vacancy known

Receiving and documenting profile

Designing & using the application form

Selecting

Notification & final checks

Induction

Sources of Recruitment/ Manpower Supply

Internal Sources External Sources

Internal Sources:- Internal sources refers to the present working force of a company or these
includes personnel already on the payroll of an organization whenever any vacancy occurs,
somebody from within the organization is upgraded, transferred, promoted or sometimes
demoted.

Internal sources are such as follows:

• Promotion
• Transfer
• Past employees
• Dependents
• Apprentice
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External Sources:- Decenzo and Robbins remark, “Occasionally, it may be necessary to

bring in some “new blood” to broaden the present ideas, knowledge & enthusiasm.” Persons are
recruited from a large market; the best selection can be made without nay distinction of caste,
sex or creed. However, this system suffers from what is called the “brain drain”. The advantages
of internal recruitment are basically the disadvantages of external recruitment.

External sources are such as follows:

• Advertisement
• Employment exchanges
• Educational institutes
• Private employment agencies
• Professional bodies
• Employee referrals
• Gate recruitment
• Labor Contractors
• Unsolicited Applicants
• Waiting list
• Labor union
• Vocational Guidance Counselors
• Appointing Part-time employees as full time
• Foreign sources
• Raiding

Methods & techniques of recruitment / Recruitment Evaluation

Direct methods Indirect methods Third Party Methods

Scouting, employee Advertisement Public & Private

Contracts, campus newspapers employment exchange,
Interviews, waiting journals trade union,
List. Radio & tv Management consulting
Firms, Professional
societies.
 33
EXECUTIVE TALENT SEARCH

Executive search means a thorough analysis of the market and the virtual elimination of chance.
It is a planned, systematic and persistent campaign designed to determine & evaluate candidates’
proven ability with the experience, knowledge, specific skills and the personal qualities required.
It requires detailed knowledge of industrial, business & functional areas from which to select a
group of potential candidates.

The recruitment of senior executive is one of the most important tasks facing management. As
Henry Ford put it “in the final analysis, it is the quality of the management that determines the
success, or failure, of an enterprise.”

When filling top-level positions, many organization use management consulting firms that
specialize in the recruitment of executive personnel. They find and screen candidates, check
references & present the most qualified candidates. Hence, the choice of suitable executive
recruitment firm is crucial.

Executive search is costly but well-worth the investment when deciding with the selection of top
management staff. If the search firm is chosen wisely, company time & money will actually be
saved.

SELECTION

Organizations have always been interested in selecting the “right” person for a particular
job. Selection is a part of the recruitment function. To select means to choose. Selection is the
process of choosing people by obtaining & assessing information about the applicants with a
view to matching these with the job requirements.

Dale Yoder, “Selection is the process by which candidates for employment are divided into two
classes- those who will be offered employment and those who will not.”

Keith Davis, “Selection is the process by which an organization chooses from a list of screened
applicants, the person or persons who best meet the selection criteria for the position available.”

❖ Significance of Selection / Importance:

1) Reduced labor turnover
2) Lesser need for training
3) Self motivation & high morale
4) More & better production- leading to profit maximization
5) Good human relations
 34
Characteristics / Nature

Process of Picking out the best Negative process

Suited men

Sequence of hurdles Sorting process

Follows standard pattern

Scientific Selection

A Scientific Selection process involves job analysis, advertisements, written tests, personal
interviews, medical examination, final selection etc. It is conducted by different types of experts.
It involves a lot of time, energy and money. Even then the most organization use a scientific
selection policy to select their employees.

Importance of Scientific Selection:

• Right job for the right person

• Reduces labor absenteeism & turnover
• Reduces wastages, damages & accidents
• Reduces training & supervision costs
• Improves goodwill of the company
• High morale
• High efficiency & productivity

SELECTION PROCESS
The selection procedure starts immediately after recruitment. It is a process of eliminating those
candidates who appear unpromising.

Steps involved in employee selection are:-

1) Reception of applicants
2) Scrutiny of applications
3) Preliminary Interview
4) Application Blank
5) Employment tests
6) Interview
 35

7) Background investigation
8) Approval of the supervisor
9) Physical examination
10) Final employment decision

❖ Evaluation of Selection
• Create a measurement standard
• Track measurement data
• Review costs
• Ensure recruitment & selection processes enhance your business image
• Guarantee that processes conform to business & legal requirements
 36

CONCEPT OF TESTING

The basic assumption underlying the use of tests in personnel selection is that individuals
are different in their job-related abilities and skills, and that these skills can be adequately and
accurately measured.

1) Performance test
2) Intelligence test
3) Aptitude test
4) Personality test
5) Situational test
6) Achievement test
7) Projective test
8) Judgement test
9) Situational test
10) Dexterity test

➢ Rules of Good Testing-

1. Tests are to be used as a screening device.
2. Tests should be designed & administered by only trained and competent persons.
3. They must be “race-free”
4. Adequate time & resources must be provided to design, validate and check tests.
5. Tests scores are not precise measures.
6. Norms should be developed for each test.
 37

Module 6
Interviewing, Placement and Induction

INTERVIEW
“Interview” is the most delicate aspect of the selection procedure.

According to Alford & Beaty, the purpose of employment interview is “to determine the
suitability of the applicant for the job and of the job of the applicant,”

The primary objective/ purpose is to select the candidate who will best advance the business’
objective.

Kind of Interviews

Preliminary Planned Depth Group Stress Panel/ Board/

Interview Interview Interview Interview Interview Round table
Interview

Non- Directive Interview also called “structured”

“Patterned” “guided”

Coverage of Interview / Interview Content

The interview conducted to select a suitable candidate should provide the information regarding:-

• Personal qualities
• Academic achievement
• Occupational experience
• Interpersonal competence (family, likes-dislikes, hobbies, community interests)
 38

• Career orientation

DO’s
1) Use a quiet, comfortable place.
2) Put the interviewee at ease.
3) Be interested in person as well as job.
4) Outline clearly the requirements of job.
5) Explain fully the conditions.
6) Tell about benefits, promotions, opportunities & so on.
7) Guide the interview
8) Listen, let him talk freely.
9) Be natural.
10) Encourage the applicant to ask questions.
11) Know when & how to close the interview.
12) Announce your decision or explain your next step.

DONT’s
1) Keep the applicants waiting.
2) Build false hopes.
3) Overall the job.
4) Rush through Interview
5) Interrupt the applicant/ interview
6) Give opinions, just answered
7) Try into his personal life
8) Repeat questions already answered
9) Send him away with a bad taste in his mouth.

Procedure / Principles of Interview

1) Plan for the interview by thoroughly reviewing job specifications & descriptions.
2) Determine specific objectives and method of interviewing.
3) Inform yourself.
4) Provide proper surroundings.
 39

5) The mental setting should be one of rapport. The interviewer must be aware of non-
verbal behavior.
6) The interviewer should possess a basic liking & respect for people.
7) Questions should be asked in a manner that encourages the interviewer to talk.
8) Listen attentively.
9) Question must be stated clearly to avoid confusion & ambiguity.
10) “Body Language” must not be ignored.
11) The interviewer should make some overt sign to indicate the end of the interview.
12) Make a decision only when all the data & information are available. Avoid decisions that
are made on first impression.
13) Conclude the interview tactfully.
14) Maintain some written record of the interview.

INTERVIEW SKILLS

When a candidate answers the questions during interview, the interviewer can judge the no.
of traits such as-

1) Sense of humor
2) Mannerism
3) Quickness of reaction
4) Fluency of speed
5) Ability to organize thoughts
6) Physical vigor
7) Appearance
8) Cultural level
9) Intelligence
10) Quick reasoning & criticism

Campus Selection Interview

Campus placement or campus interview is the program conducted within educational
institutes or in a common place to provide jobs to students pursuing or in the stage of computing
the programme. In this programme, industries visit the colleges to select students depending on
their ability to work, capability, focus and aim.
 40

Objective:-
1. Major objective is to identify the talented & qualified professionals before they complete
their education.
2. It provides employment opportunities to students who are pursuing or in the final stage of
completing the course.
3. It reduces the time for an industry to pick the candidates according to their need.

Types of Campus Placement:-

There are two types of campus placement -
On-Campus & Off- Campus

TYPES

Pool Campus Project Placement Student internship

placement

Conducted within group company recruit students to do

of colleges or institutes. Their academic projects in the co. recruit the students
Off- Campus. interiors industrial environment. as interns.

Procedure of Campus Placement

1. Pre- Placement Task
2. Educational Qualification
3. Written Test
4. Group Discussion
5. Technical Interview
6. Formal Interview
7. Post- Placement Task
 41

Conference Interview Technique used for Global Sourcing

Global Sourcing: - A Procurement strategy in which a business seeks to find out the most cost
efficient location for manufacturing a product, even if the location is in a foreign country.

For ex-

Find might close use

Toy manufacturing co. Low cost/wages domestic co. Foreign
In foreign manufacturer

Conference Interview
Technique

Video Conferencing Tele Conferencing Trade Fair

PLACEMENT AND INDUCTION

Placement: - It is the task to match positions with people so that each individual is assigned to
that position where he is likely to make the best use of his abilities consistent with the
requirements of his job.

It is the process of assigning a specific job to the candidates selected by the company. In essence,
Placement refers to assigning rank & responsibility to an individual, identifying him with a
particular job.

• Objective is to fit new employee to the job demands.

• Proper placements helps to improve employee morale

To reduce employee turnover, absenteeism & accidents.

Induction: - After selection/ Placement of employees, the first step is to orient them to
organizational life. Induction or Orientation programme of a organization is a process to guide
and counsel the employees to familiarize them with the job and the organization.
 42

This process helps to clarify terms and conditions of employment. There are various types of
induction/ orientation programme-

i. General Orientation
ii. Specific Orientation
iii. Follow-up Orientation

❖ Contents in Induction Programme:-

• Organizational issues
• Employee Benefits
• Introductions to supervisors, co-workers etc.
• Job duties

❖ Steps in Induction Programme:-

The HR department may initiate the following steps while organizing the induction
programme:

1) Welcome to the organization

2) Explain about the company
3) Show the location, department where the new recruit will work.
4) Give the company’s manual.
5) Provide details about various work groups and the extent of unionism within the
company.
6) Give details about pay, benefits, holidays, leave etc. Emphasize the importance of
attendance or punctuality.
7) Explain about future training opportunities and career prospects.
8) Clarify doubts by encouraging the employee to come out with questions
9) Take the employee on a guided tour of buildings, facilities etc. & hand him over to his
supervisor.
 43

Module 7
Career Planning & Succession Planning

CAREER
Concept of Career: - A Career is described as the evolving sequence of persons work
experience overtime. Effective careers benefits organization, individuals and society as a whole.

According of D.T. Mall, “A career consists of the changes in values, attitudes & motivation that
occur as a person grows older.”

S.E. Sullivan says, “A person’s career is shaped by many complex factors such as performance,
education, experience, influential parents, caste links and a certain amount of luck.”

❖ Dimensions of Career Systems

A model of career system developed by Sonnenfeld and Peiperi is based on two dimensions-
1) Supply Flow: - Refers to the degree to which personnel may easily move into and out of
the firm.
2) Assignment Flow: - Describes the bases for making job assignment and promotion
decisions.

Stages of Growth and Career

A career includes many positions, stages and transitions just as a person’s life does. Most of us
have gone or will go through the under mentioned five stages:
 44

EXPLORATION: A career stage that generally ends in the mid -twenties when one makes
transition from formal education to job .We start exploring about different career opportunities.
Our decision for career gets influenced by parents, peers and the financial resources. I t is a time
when a number of expectations about one’s career are developed, many of which are unrealistic.

ESTABLISHMENT: this period begins when we start the search of work and also includes
accepting the first job, acceptance by peers, learning about the job and gaining the first taste of
success or failure in the real world.
Problems in exploration period
1. Finding a niche
2. Making your mark
3. Characterized by making mistakes
.
MID-CAREER: A stage marked by:-
• Continuous improvement in the performance
• Leveling off in the performance
• Beginning of deterioration process

LATE CAREER: A career stage in which neither the person is learning about their jobs nor
they are expected to outdo their level of performance from previous years. It also has two affects
on:
• Individuals who have grown in mid career stage
• Individuals who have stagnated or deteriorated

DECLINE: This the final stage in one’s career which is usually marked by retirement. This is
the difficult stage for everyone but hardest for those who have had continued successes in the
earlier stages and then comes the time has come for retirement.

Career Anchors
Introduction
• The term was introduced by U.S. organizational theorist Edgar H. Scheint.
• These are strong non-monetary factors, which affect work and career satisfaction and
provide away of understanding these motivators of career decisions.
 45

Meaning
According to Schein, “A career anchor consists of the individual’s talents, motives and values,
as perceived by himself/ herself which the individual uses to for motives and stabilize his/her
career.

1) If an employee is not aware of his/her career anchors, he/she could land -up in a work
situation in which he/she lacks job satisfaction.
2) As an individual is likely to make job selections that are consistent with his/her self
image, career anchors can serve as a basis for career choices.”

Types of Career Anchors

• Technical/ Functional Competence: These kinds of people like being good at
something and work to become a guru or expert. They like to be challenged and then use
their skills to meet the challenge, doing the job properly and better than almost anyone
else.

• Managerial Competence: These people want to be managers they like problem solving
and dealing with other people. They thrive on responsibility to be successful, they also
need emotional competence.

• Autonomy/ Independence: These people have a primary need to work under their own
rules and regulations. They avoid standards and prefer to work alone.

• Security/ Stability: These people seek stability and continuity as primary factors of their
lives. They avoid risk and are generally ‘lifers’ in their job.

• Entrepreneurial Creativity: These people like to invent things, be creative and to run
their own businesses. They differ from those who seek autonomy. They find ownership
very important. They get easily bored. For them, wealth is a sign of success.

• Service/ Dedication to a cause: Service oriented people are driven more by how they
can help other people by using their talents. They may work in public services or in areas
such as human resources.
 46

• Pure Challenge: People driven by challenge seek constant stimulation and difficult
problems that they can tackle. Such people change jobs when the current one gets boring,
and their career can be varied.

• Lifestyle: In this type of career anchors, people are keen to integrate the needs of the self,
the family and career. They seek flexibility and an organization which understands their
desire for balance.

Career Models
1) Pyramidal Model
2) Obsolescence Model
3) New Model
4) Japanese Career Model

Career Planning

Concept of Career Planning

Career Planning is the process by which one selects goals & the path to these goals.
Career Planning is a process to gain insight into what a person is, where he is and where he
wants to go in his career.
Career Planning essentially means helping the employees to plan their career in terms of their
capacities within the context of organizational needs.
Schwind, Das and Wager, “Career Planning is the process of enhancing an employee’s future
value.”

Characteristics
1) Career Planning is identifying and matching the needs of individuals and organization.
2) It is an individual’s choice of occupation, organization and career path.
3) It defines life career, abilities & interest of employees.
4) It develops and shares a personal life career diagram.
5) It provides employees to make strategy for work life balance.

Objectives
1. To attract & retain effective persons in an organization.
2. To increase employee productivity.
3. To utilize human resource optimally.
 47

4. To improve morale & motivation level.

5. To make employees adaptable to changes.
6. To identify personal interests, abilities, strength & weaknesses.
7. To maintain industrial relations.

Advantages of Career Planning

1. The process of career planning helps the individual to have the knowledge of various
career opportunities, his priorities etc.
2. It helps the organization to identify internal employees who can be promoted.
3. It improves employee’s performance on the job by taping their potential abilities and
further employee turnover.
4. Efficient career planning ensures the availability of human resources with required
skill, knowledge and talent.
5. The career plan continuously tries to satisfy the employee expectations and as such
minimizes employee frustration.
6. It contributes significantly to reduction of costs.

Disadvantages of Career Planning

1. Dual career families
2. Low ceiling careers
3. Declining career opportunities
4. Downsizing/ delaying and careers

Career Planning Process

1. Individual needs and

aspirations

3. Individual strengths 4. Placement on 5. Review of

and weaknesses career path career plans

2. Organizational needs and

opportunities

Career Development
 48

Career development involves making decisions about an occupation/ profession and engaging in
activities to attain career goals. Career development has been defined as the interaction of
psychological, sociological, economic, physical and chance factors that shape the sequence of
jobs, occupations/professions or careers that a person may engage in throughout a lifetime.

According to Gysbers and Moore, “Career development is self-development over the life span
through the integration of the roles, settings and events of a person’s life.”

Thus, Career Development is an ongoing and formalized effort that focuses on developing
enriched and more capable employees.

Organizational HR Policies/ Methods for Effective Career Development

1. Job rotation and challenging assignments
2. Dissemination of career option information
3. Job postings
4. Performance feedback and coaching interventions
5. Work-life balance interventions
6. Career counseling
7. Career development workshops
8. Continuing education and training
9. Periodic job changes
10. Assessment centers
11. Mentoring
12. Developmental training

Career Development Process

Career Need Assessment

Vision

Career Opportunities

Need Opportunity Alignment

 49

Succession Management

Succession Management, an alternative approach developed in the 1990’s, is used to examine

existing managerial talent in light of future business needs and challenges.

The basic purpose of succession management is to ensure that the right talent is available when
needed and that appropriate development experiences are provided for higher-level employees.

It focuses on creating and stocking pools of candidates with high leadership potential.

To understand the concept of Succession management, the system of Succession Planning

need to be understood since Succession Planning precedes Succession Management.

Elements of Succession Planning Program

1. Tying management development to HR planning

2. Defining managerial requirements
3. Assessing management potential
4. Identifying career paths
5. Developing Replacement Charts
6. Designing the Instructional Program

Succession Management Process

1. Identifying the shortage of leadership skills and defining the requirements – HR

professionals generally estimate manpower flows, using various forecasting techniques.
In respect of a commercial bank, e.g., skill shortage may arise due to retirement,
resignation, transfer, etc.

2. Identifying Potential Successors for Critical Position – To find people with the highest
potential, the organization has to collect information from various sources regarding their
key skill competencies and core values.

3. Coach and Groom the ‘Stars’ – After identifying potential successors for important
positions, the organization must devise ways and means to fast track their development.
The methods must be tailor –made to suit the mental make- up of candidates and, at the
same, allow the candidates to improve the targeted behaviors.
 50

4. Secure Top Management’s Commitment and Support – The above development –

oriented action plan would be fruitless if it does not enjoy consistent support and
continued blessings from top management.

Challenges to Succession Management

• Finding the Right Employees to Develop
• Time for Process
• Interference by Senior Leaders
• Organizational Issues such as Downsizing and Merger
• Implementation and Follow Through
• Assessment and Measurement
• Long Talented People
• Lack of Interest
• Over- Emphasizing of Successors
• Family Orientation

Management Development
Any succession planning initiative becomes ineffective without management development,
which is a scientific training process for managers and executives to enrich their knowledge and
skills, so as to make them competent to manage their organizations effectively.

According to Molander, Management development is “a conscious and systematic process to

control the development of managerial resources in the organization for the achievement of goals
and strategies.”

According to Mumford, Management development is “an attempt to improve managerial

effectiveness through a planned and deliberate learning process.”

❖ Characteristics of Management Development:

• Continuous process
• Knowledge Updating activity
• Vehicle for Attitudinal Change
• Stimulant to higher competence
• Deficiency Improve
• Self- Development Process
 51
Methods/ Important Techniques of Management Development

On-the-Job Techniques Off-the-job Techniques

Coaching Case Method

Incident Method
Job Rotation

Role Playing
Under Study

In Basket
Multiple Management Method

Business Game

Planned Progression Sensitivity

Training

Creation of “assistant-
to” Positions Simulation

Temporary promotions
Grid Training

Committees and Junior Conferences

Boards

Lectures

Management Development Programme (MDP)

Management development programme is a structured system of skill development of managers.

Objectives of Management Development Programme:

1. To make available managers and executives with requisite knowledge and skill, to meet
the present and anticipated future needs of the organizations.
 52

2. To encourage managers to develop their full potentiality for handling greater

responsibility.
3. To improve the functional competence of the managers, making them more transparent
and responsive to the changing needs of the organization.
4. To sustain good performance of the managers throughout their career by not allowing
them to develop managerial obsolescence.
5. To develop mangers for higher assignments, duly replacing the elderly executives.

MDP Objectives for Top Management

1. To broaden the outlook in regard to their role, position and responsibilities in the
organization and outside.
2. To think through the problems that confronts an organization at present or might crop up
in the future.
3. To understand economic, technical and institutional forces to solve business problems.
4. To acquire knowledge about problems of human relations.

MDP for Middle-Level Management

1. To establish a clear picture of executive functions and responsibilities.

2. To develop the ability to analyze problems and to take appropriate action.
3. To inculcate knowledge of human motivation and human relationships
4. To develop responsible leadership.

Auditing MDPs
John M. Elliott, Vice President of Dale, Elliott & Company, Inc., New York identified 15
aspects, more in the form of questions, to determine the functioning and effectiveness of MDP.
These are follows;

1. Identification of an organization’s different job levels for establishing promotional

channels for managers and at the same time determining the likely job vacancies at each
level.
2. Determining whether enough promotable manpower is available at each level to fill all
managerial openings, the possibility of filling such vacancies through the organization’s
own manpower, the extent of hiring from outside or to determine the queuing problem for
promotable executives.
3. Whether career planning at all levels adequately meets financial and other long range
growth plans.
4. Whether proper utilization of employee’s knowledge and skills is ensured.
 53

5. Identification of specific job assignments which will contribute most to prepare

outstanding men for key jobs in the company.
6. Whether an organization can afford to retain potential executives on a particular job
assignment, for a long time to allow him to prove his ability to handle it competently.
7. Whether a sufficient number of intermediate level jobs have been reserved as training
spots for effecting job rotation or committee\Board assignments.
8. Whether every potential managerial personnel now work under a superior, who is able to
give guidance, counsel and also instill confidence and a sense of responsibility.
9. Whether adequate feedback system exists to review and update MDP from time to time,
depending on changing requirements.
10. Whether best available tools and procedures, including psychological tests and interview
guides have been developed to identify the potentiality of the executives.

JOB ROTATION

Job Rotation is the process of preparing employees at a lower level to replace someone at the
next higher level. It is generally done for the designations that are crucial for the effective and
efficient functioning of the organization.

Job Rotation is also practiced to allow qualified employees to gain more insights into the
processes of a company, and to reduce boredom and increase the job satisfaction through job
variation.

Importance of Job Rotation

1. It broadens employees and increases their experience. Boredom and monotony, which
develop after a person has acquired the skills necessary to perform the task effectively,
are reduced when transfers are made frequently.
2. Executives will tend to think in terms of managerial principles rather than the technical
aspects of particular functional fields. That rotating will permit good executives to
determine the functional fields in which they would prefer to manage.
3. The employee experiences of variety of work, workplace and peer group.
4. Job Rotation helps to broaden the knowledge and skills of an employee.
5. Job Rotation broadens the work experience of employees and turns specialist into
generalists.
6. It is beneficial for the management also as the management gets employees who can
perform a variety of tasks to meet the contingencies.
7. This method improves the self image and personal worth of the employee.
 54

Job Rotation at Different Levels of Management

HIGHER LEVEL MIDDLE LEVEL LOWER LEVEL

Types of Job Rotation

1. Trainee Rotation in Non- Supervisory Work Situations

2. Trainee Rotation in Observation assignments
3. Rotation among Managerial Training Position
4. Middle Level Rotation in Assistant Position
5. Unspecified Rotation among Managerial Positions

Replacement Analysis
Organizations implement replacement planning through charts, known as Replacement Charts. A
Replacement chart shows the position holder to be replaced and the likely candidates who will
replace him. It also documents the knowledge, skills, abilities, and the time frame by which they
will be ready to replace the current position holder.

Shortcomings of Replacement Analysis

• Very little consideration of actual requirements of the position.
• Replacements of candidates are mostly based on personal knowledge of the nominating
managers. Therefore, none of the possible candidates may be suitable for the vacant
position.
• A high potential candidate may be suitable for different positions but he may be
bracketed in a single box based on the vertical positions. Therefore, his true potential is
unlikely to be utilized effectively.
• Emphasis is placed only on vertical movement of personnel and no consideration is given
to horizontal movement of personnel which may be more beneficial to the organization in
the long-term.
• No emphasis is placed on developing personnel for vertical or horizontal movement.
Therefore, suitable replacements are not available in emergency.
 55

For Example: - Replacement Chart

Ramamurthy, S.N.
Current position: Managing Director
Possible Replacements Potential
Ramesh Pawar High
J.S. Patel Medium

Ramesh Pawar J.S. Patel

Marketing Director Finance Director
Possible Replacements Potential Possible Replacements Potential
S. Jairam Medium Shivraj Chawala High
Shrikant High P.K. Nigam Medium

Difference between Replacement Planning and Succession Planning

Variable Replacement Planning Succession Planning

Time frame 0-6 months 6-36 months
Resources Best candidate available at the Candidates with best development
time. potential.
Level of Planning Selection and placement of the Identification of high potential
preferred available candidate. candidates well in advance.
Selection Focus Vertical line of succession within Development of a general talent pool.
department on external search.
Development Plans Immediate on the job training for Extensive development planning with
new replacement. specific plans and goals set for each
person in advance.
Decision Making By Executive Director and small Development Plans are result of input
interview panel. and discussion from multiple
managers.
 56

Module 8
HR Planning and Selection in the Modern
Business Environment

Changing Perspective in the field of Recruitment and Selection in the Information

Age

E-HRM
Introduction

• When HR department uses Internet and other related technologies to support their
activities the process is called E-HRM.
• E-HRM is the complete integration of all HR systems and processes based on common
HR data and information and on interdependent tools and processes.
• Fully developed E-HRM can provide:
o Data gathering tools,
o Analysis capabilities, decision support resources for HR professionals to hire,
pay, promote, terminate, assign, develop, appraise and reward employees.

Definition
“E-HRM is the planning, implementation and application of information technology for both
networking and supporting at least two individual or collective actors in their shared performing
of HR activities.”

E-HRM Working Area

• e-Job design & Job analysis

• e-Human Resource Planning
• e-Recruitment
• e-Selection
• e-Performance Management
• e- Training & Development
 57

• e-Compensation
• e-HR Records

E-Recruitment
E-recruitment, also known as online recruitment, refers to the use of web-based technology for
the various processes of attracting, assessing, selecting, recruiting and on boarding job
candidates.

E-recruitment definition

E-recruitment, also known as online recruitment, refers to the use of web-based technology for
the various processes of attracting, assessing, selecting, recruiting and on boarding job
candidates.

Through e-recruitment employers reach larger number of potential employees. Companies may
build their e-recruitment platforms in-house, use e-recruitment HR software or employ
recruitment agencies that utilize e-recruitment as part of their package.

E-recruitment elements:
1. Applicant tracking: candidate status with respect to the jobs applied by him/her

2. Employer’s website: provides details of job opportunities and collect data for the same

3. Job boards: carry job advertisements from employers and agencies

4. Online testing: some kind of evaluation of candidates over Internet

5. Social media: quick reach out to potential candidates

Advantages of e-recruitment
1. Applicant tracking: candidate status with respect to the jobs applied by him/her

2. Employer’s website: provides details of job opportunities and collecst data for the same

3. Job boards: carry job advertisements from employers and agencies

4. Online testing: some kind of evaluation of candidates over Internet

5. Social media: quick reach out to potential candidates

 58

Disadvantages of e-recruitment
1. Not suitable for senior positions where the pool of prospective candidates is much lower

2. High volume of responses including large number of unsuitable candidates

3. Technology issues that come from standardizing the application process

4. Too impersonal

Kinds of e-Recruitment
1. Job Portals: It defines posting the position with the job description and job specification
on the job portal and also searching for the suitable resumes posted on the site
corresponding to the opening in the organization.

2. Online recruitment/ Application section: Creating a complete online recruitment

/application section in the company’s own website. Companies have added an application
system to its website, where the ‘passive’ job seekers can submit their resumes into the
database of the organization for consideration in future, as and when the roles become
available.

E-Selection
E-Selection has become popular with the conduct of various tests through online, contracting the
candidates through e-mail and conducting the preliminary interviews and final interview through
audio conferencing & video conferencing.

Further, the employees get the reference letters/opinions from the referees through e-mail.

Advantages of E-Selection:
1. The candidates need not to move from his place to take written test, preliminary
interview, provide additional information and final interview. Thus, it eliminates
inconvenience, reduces costs and time required to conduct the selection process.

2. It reduces the time required for other selection techniques.

3. It reduces the overall cost of selection process.

Disadvantages of E-Selection:
1. It cannot operate certain selection tests like psychological tests.

2. Mechanical defects in transmitting information reduce the efficiency of selection

techniques.
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3. Judgement based on the E-Selection process cannot be as perfect as traditional process.

Outsourcing
According to Dave Griffiths’ Outsourcing can be defined as, “the strategic use of outside
resources to perform activities traditionally handled by internal staff and resources”

Aim of Outsourcing
Provide services that are scalable, secure and efficient while improving overall service and
reducing costs.

Key Areas of Outsourcing

• Information Technology/ IT solutions

• Call centers

• Finance & Accounting Outsourcing

• Procurement Outsourcing

• Textiles

• Manufacturing

• Human resource management

Advantages of Outsourcing
• Cost effective

• Skilled expertise

• Time zone difference

• Focus on core competencies

• Increased productivity and efficiency

• Better people management

Disadvantages of Outsourcing
• Loss of managerial control

• Hidden costs
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• Quality problems

• Threat to security and confidentiality

• Lack of customer focus

• Linguistic barriers

Types of Outsourcing
• Business Process Outsourcing: BPO is a subset of outsourcing that involves the
contracting of the operations and responsibilities of specific business functions or
processes to a third-part service provider.

• Knowledge Process Outsourcing: KPO describes the outsourcing of core business

activities, which often are competitively important or form an integral part of a
company’s value chain. Therefore, KPO requires advanced analytical and technical skills
as well as a high degree of proprietary domain expertise.

• Legal Process Outsourcing: LPO refers to the practice of law firm or corporation
obtaining legal support services from an outside law firm or legal support services
company. This process has been marked by the practice of outsourcing any activity
except those where personal presence or contact is required.

• Recruitment Process Outsourcing: RPO is a form of business process outsourcing

where an employer outsources or transfers all or part of its recruitment activities to an
external service provider.

• Engineering Process Outsourcing: EPO offers global consulting and outsourcing

services providing end to end services in the areas of engineering and technical process
outsourcing.