Chapter Three: The Acquisition of HR

l Employment Process is concerned with the obt

aining of the proper kind and number of people n
ecessary to accomplish organizational objectives.
It includes the following basic tasks:
3.1 Job Analysis
3.2 Human Resource Planning
3.3 Recruitment
3.4 Selection
3.5 Induction
3.6 Placement
3.1 Job Analysis

l Job Analysis is a systematic process of studyin

g and collecting information about the nature and
characteristics of the job and the qualification of t
he employee that will fill the job.
l Job analysis is the procedure for determining the
duties and skill requirements of a job and the kin
d of person who should be hired for it.
l Job analysis is a systematic way to gather and
analyze information about the content, context, a
nd human requirement of jobs.
Methods of Collecting JA Data

l Personal Observation [slow and less accurate],

l Interview [accurate, but expensive and time consuming]
l Questionnaire [quick and economic to use],
l Employee Log or critical incident [appropriate for high
ly specialized works] and others.
l Job Performance: the job analyst actually performs the
job in question. It is not suitable for risky jobs such as fir
e fighter or jobs that requires extensive training such as
doctors, pharmacy
 Information gathered with JA

l Work Activities: Work activities performed ; How, why,

when activity is performed
l Performance standards: Quantity, quality, speed; Used
to evaluate employee performance
l Human Behaviors: Communicating, decision making, an
d; Other physical job demands, e.g., lifting
l Tools, equipment, etc used: Products made; Knowledg
e dealt with / applied and Services rendered
l Job Context: Physical work conditions; Work group and
Incentives for doing job
l Human Requirements: Job-related knowledge, skills; Pe
rsonal attributes, e.g. personality, aptitudes
Cont’d…

l Data Sources for Job Analysis

– Employees
– Supervisors
– Managers
l Job Analysis is Conducted by:
– HR Specialists
– Outside Consultants
– Supervisors/Managers
Steps in Job Analysis Process

l There are five steps required in the process of Job

Analysis:
1. Planning the job analysis
2. Preparing and introducing the Job Analysis
3. Conducting the Job Analysis
4. Developing Job Descriptions and Job Specificatio
ns
5. Maintain and Updating Job Descriptions and Job
Specifications
Job Analysis

l The purpose of Job Analysis is to obtain ans

wer to the following six questions:
A. What workers does= task or function
B. Why is done=reason
C. What aids= tools, machines, equipments,…
D. What qualification=skill, capacity, experience…
E. What is accomplished= output
F. How is done= procedure, methods, techiniques,
Job Analysis

l Components of Job Analysis:

1. Job Description: it is the profile of th
e job. It defines what the job does.
2. Job Specification: it is the profile of
the human characteristics needed by th
e job.
Job Description

l Job Description: is a written document that shows the

nature and characteristics of the task to be performed. I
t is the picture of the job
l It includes the following points:
1. Job Identity: title, location, grade…
2. Job Summary
3. Brief statement of the purpose of the job
4. Job Duties and Responsibilities
5. Facts about working Conditions: allowance, private office, Safet
y, Health, physical, environmental, hours of work
6. Machinery and equipment to be used
Job Specification

l It is a written statement of the minimum acceptable hum

an qualities necessary to prepare a given job properly. J
ob Specification includes the following information:
1. Physical Qualities: appearance, age, eyesight, hearing,
2. Mental Quality: intelligent, thinking ability, ability to make sound
decision,
3. Skill or Talent: communication ,technical, conceptual, human a
nd computer skill
4. Qualification: Knowledge acquired from experience, education
or training
5. Personality Requirement; emotion, stable, behavior, patient,
Job Design

l Job design has been defined by Davis (1966) as:

‘The specification of the contents, methods, and
relationships of jobs in order to satisfy technologi
cal and organizational requirements as well as th
e social and personal requirements of the job hol
der’.
l The overall objective of job design is to integrate
the needs of the individual with those of the orga
nization.
The Principle of Job Design

l An integrated view suggests that the following m

otivating characteristics are of prime importance i
n job design:
– autonomy, discretion, self-control and responsi
bility;
– variety;
– use of abilities;
– feedback;
– belief that the task is significant.
Approaches to Job Design

l Job rotation, which comprises the movement of

employees from one task to another to reduce m
onotony by increasing variety.
l Job enlargement, which means combining previou
sly fragmented tasks into one job, again to in
crease the variety and meaning of repetitive w
ork.
l Job enrichment, which goes beyond job enlargem
ent to add greater autonomy and responsibility
to a job and is based on the job characteristi
cs approach.
 3.2 Human Resource Planning
l Human resource (HR) planning is the process of anticip
ating and carrying out the movement of people into, within,
and out of the organization.
l Human resource planning is the process by which an orga
nization ensures that it has the right number and kinds of
people, at the right places, at the right time, Capable of e
fficiently and effectively completing those tasks that will he
lp the organization achieve its overall objectives.
l Human resource planning can be defined as a process by
which an organization should move from its current man p
ower position to its desired man power position
 Aims of HR Planning

l attract and retain the number of people required with t

he appropriate skills, expertise and competencies;
l anticipate the problems of potential surpluses or defic
its of people;
l develop a well-trained and flexible workforce,
l reduces dependence on external recruitment when ke
y skills are in short supply by formulating retention, as
well as employee development strategies;
l improve the utilization of people by introducing more f
lexible systems of work.
Process of HRP

l There are five steps [Procedures ] needed i

n developing HRP
– Step 1: Determine the total Human Resource Plann
ing Requirement [HRPR]
– Step 2: Determine the Human Resource Inventory
[HRI]
– Step 3: Anticipate Change in HRI
– Step 4: Determine the Net Human Resource Requir
ement [DNHRR]
– Step 5: Action Planning
Step 1: Determine the total Human Reso
urce Planning Requirement [HRPR]

l HRPR begins with the analysis of the organizati

on’s Business Plan such as
– Sales Budget
– Human Resource Budget
– Productivity
– Materials Budget
– E.t.c
l HRP for a new organization may be to study sim
ilar organization by using forecasting techniques
Forecasting Human Resource

l Forecasting is based on the annual budget and long-te

rm corporate plan. Methods of forecasting HR are state
d below:
A. Judgment and experience: It is subjective method which is p
urely the common sense of the manager. It is appropriate for s
hort period of time.
B. Zero base forecasting: The existing HR information is taken
as a starting and based on that information, you an predict for t
he future. The idea here is re-assigning the existing HR and us
e efficiently and effectively.
C. Bottom up approach: is a popular method which is based on
the projection of future requirements from the concerned secti
ons.
D. Delphi Method: method of HR forecasting by a group of exper
ts
Step 2: HR Audit/Inventory/

l This step deals with knowing the type and numb

er of people available in the organization. In othe
r words, it is Human Resource Auditing.
l There are two types of HRI/Audit/
A. Management Audit: deals with the number and type
of people available in the management position
B. Skill Audit: deals with the number and type of people
available in the non management position
l Human Resource Audit should be explained/exp
ressed/ in terms of number.
Step 3: Anticipate Change in HRI

l The present data in the HRI is the photograph o

f the human resource available at a singe point
in time. But, in the long run, changes must be a
nticipated and carefully planned. This is called
employee mobility such as
A. Turn over
B. Promotion
C. Transfer
D. Demotion
E. E.t.c
Turn over

l It refers to movement in to and out of the orga

nization. Reasons for turn over are
A. Natural Wast: death, illness, sickness, retirement
B. Voluntary TO: poor working condition in the organi
zation, dissatisfaction with management and paym
ent, no possibility/opportunity/ growth and others
C. Involuntary TO: dismissal, forced by the organizati
on for incapable employee
Turn over

l The degree of movement of Human Resource [Turn O

ver] depends on two factors
A. Time: as people stay longer in the organization, they become
permanent.
B. Age: as people become older and older, they stay in the organ
ization permanently
Step 4: Determine the Net Human Resou
rce Planning Requirement

l Net Human Resource Requirement is the diff

erent between the total Human Resource Plann
ing Requirement and the Human Resource Aud
it and Anticipated changes in HRI.
l NHRR= THRPR- HRI- ∆HRI
l The result can be zero [no variation on demand
and supply], positive [surplus of employees] or
negative [shortage of employees].
 Step 5: Action Planning

l This is the step to be taken for adjustment pur

pose of the net requirement of Human Resour
ce Planning. So, based on the result in step fo
ur, Action Plan should be developed for each c
onditions. That is
A. Action Planning when Net Human Resource Planni
ng Requirement is Zero
B. Action Planning under Surplus Condition
C. Action Planning under Shortage Condition
Action Planning

A. Action Planning when Net Human Resource

Planning Requirement is Zero: This is a situ
ation when number of employees demanded a
nd number of employees available in the organ
ization matches. That means there is no variati
on between demand and supply of employee i
n the organization. So, there is no action to b
e taken.
Action Plan (Surplus Condition)

l Options to address Surplus

– Short -term options
l Increase overtime or part time
l Freeze hires
l Transfer work –out temporarily
l Reduce work weeks/part-time
l Temporary shutdown or layoff
l Excuse absenteeism
l Temporary assignment to other units
– Long-term options: Freeze hires , Encourage attrition; Perma
nent transfer -out of worker , Retrenchment and Provide incentiv
e for early retirement
Action Plan (Shortage of HR)

l Options to address shortages

– Short -term options
l Increase overtime or part time
l Increase contract workers
l Increase productivity through training
l Reduce vacations and holydays
l Temporary assignments
– Long-term options
l Recall from leaves
l New hires
l Permanent transfer in worker
l Training and development
 3.3 Recruitment: Definition
l Recruitment is the process of attracting potential candidat
es who are capable and interested to fill the job.
l Sources of Recruitment. There are two sources:
– Internal: Sources of Recruitment through promotion, upgrading or
transfer. It is Less costly, save time and effort, raise morale of empl
oyees, behavior of employees are known and tested, needs little or
no adjustment, but provides limited choice, doesn’t help to avoid di
ssatisfied employees and danger of inbreeding
– External: Sources of Recruitment outside of the organization such
as universities, colleges, employment agencies, and others. Provid
es large and better choice, avoids inbreeding and helps to avoid di
ssatisfied employees but it is costly; behavior of employees is unkn
own, internal employees may be disappointed and needs large adj
ustment.
Recruitment Sources: Priority

l After discussing the different sources of recruitment we

can conclude that there is no hard and fast rule whether
the recruitment must be internally or externally or exclusi
ve to each other.
l The best management policy regarding recruitment mus
t be to first look within the organization and if we are not
able to locate the suitable talents, external recruitment b
ecomes inevitable. To use the words of Koontz and O’D
onnell “the (recruitment) policy should be to rise talent ra
ther than ‘raid’ for it”.
 Recruitment Policy

l An organization should have a recruitment policy derived fr

om the country’s Policy. A good recruitment policy must sat
isfy the following conditions:
– Organization’s objectives
– Identification of the recruitment needs
– Ensure long-term employment opportunities for its empl
oyees
– Preferred sources of recruitment
l So, the policy involves a commitment by the organization t
o principles such as:
– To find/employ the best qualified persons for each job.
– To retain the best talent by offering life-time carriers
– Facilitating personal growth on the job.
Steps in Recruitment Process
l Step-1: Identify the need for recruitment
l Step-2: Describe the job
l Step-3:complete recruitment request form
l Step-4: Agree the grade and salary the job
l Step-5: Advertise the job
 Step 1: Identify the need for recruitment

l The recruitment process starts when a vacancy arises. T

his may be a new position or due to expansion of the com
pany or as a result of a staff member leaving the organiza
tion.
l For each vacancy it is important to consider:
– Does the role fits with the organization’s mission and vision?
– Does the role add value to the organization?
– How the role will be funded?
l Organizations should consider the cost of employing staff
s such as salary, benefits, equipments…
 Step 2: Describe the job-the job profile

l The job profile has two components: job description and j

ob specification.
l Job description: include the main purpose of the job, sco
pe of the job, and duties and responsibilities of the job .W
hen you are stating the duties and responsibilities, use ver
bs for example advise, arrange, check, inspect, train…
l Job Specification: includes the minimum requirements of
the individual to carry out the job such as skill, experience,
qualification, personality, physical quality and others.
l Once the job profile is prepared, you have to answer ques
tions like, is it realistic?, is it clear? is it equal opportunity f
or all?
Step 3: Complete the Recruitment Reque
st Form

l Once the job profile is written, it is importa

nt to have a process where line managers
make an official request for the position to
the HRM Department.
l A suggested temples for recruitment requ
est form is stated as follows.
Job Title
Location

Needed from Start date End date

Reason needed Replacement New Position
Funding General fund Specific fund
Job Profile Attached?
Advertisement Suggesting appropriate place to advertis
e the job
Requested by Name Signature Date
Approved by Name Signature Date
Step 4: Agree the Grade and Salary

l The Grade and Salary of a job depends on the job profil

e. In order to set a Grade for a job, the job profile must
be evaluated.
l Evaluation of jobs should be carried out by a member of
the HRM Department and the line manager of the job b
eing valuated. Between them, they have an overview of
the organization and good understanding of the job.
l Job Evaluation depends on three criteria such as level
of skill, level of responsibility and level of representation.
Lower skill, responsibility and representation are given f
ewer points and vice versa. More points are given to re
sponsibility.
Levels and crit Responsibility Skill Representation
eria

Low

Medium

High

Very High
Step 5: Advertise the job

l Once the job description, Job Specification and

Salary has been finalized, it is time to let people
know about the vacancy.
l There are many ways to advertise vacancies suc
h as notice board, through internet, using newsp
apers.
l It is worth thinking carefully about targeting place
s where people with right skills and personal qua
lities are likely to see the advertisement
Con’t

l Information Included in the advertisement:

– Brief Description of the Organization
– Location of the job
– Salary and grade of the job
– Start date
– Closing date
– How to apply
– And other information included in the job description
and job specification.
3.4 Selection

l Selection either internal or external is a deliberate effort

of the organization to select a fixed number of personnel
from a large number of applicants.
l The primary aim of employees’ selection is to choose th
ose persons who are most likely to perform their jobs wit
h maximum effectiveness and to remain with the compa
ny. Thus, in selection, an attempt is made to find a suita
ble candidate for the job. In doing so naturally many app
licants are rejected.
l Selection is the process of choosing the best candidate
among many applicants by matching personal qualities
with the job requirement.
Steps involved in Selection
l There is no shortcut to an accurate evaluation of a candid
ate. A variety of methods are used to select personnel. T
he selection pattern, however, is not common for all orga
nizations.
l The steps commonly followed are as under:
– Application bank;
– Initial interview of the candidate;
– Employment tests, Interviews;
– Checking references;
– Physical or medical examination;
– Offer the job;
– Inform unsuccessful candidates and
– Open personal file
 Testing (Written or Practical)

l Valid and reliable test will be given to measure the

mental and psychological effort of the individual. T
he test could be theoretical test [written examinatio
n] or practical test on the actual job.
l Tests are tools in evaluating the capabilities of an
applicant to a position.
l Different tests are administered to determine the s
uitability of candidates for different positions which
test is to be administered depends upon the type o
f the job, the skills required, the duties attached to
the job etc.
 Different types of Tests

1. Aptitude test: - Aptitude or potential ability tests are wid

ely used to measure the talent ability of a candidate to le
arn new job or skill. Aptitude test are tests that measure
general ability to learn/acquire a skill.
2. Interest test: - interest test is used to find out the type of
work in which the candidate has an interest. An interest t
est only indicates the interest of a candidate for a particu
lar job. It does not reveal his/her ability to do it.
3. Intelligence test: used to find out the candidate’s intellig
ence. It may be useful for selection purposes and determ
ine the futures of an employees word fluency, memory, i
nductive reasoning and speed of perception.
 Different types of Tests

4. Performance/achievement test: - This test is used to measure the c

andidate’s level of knowledge and skill in the particular occupation Ac
hievement test measure the skill of knowledge, which is acquired, as
a result of previous experience or training secured by a candidate. Fo
r e.g : A candidate for a driver’s post may be asked to drive the vehicl
e.
5. Personality test: -is used to measure characteristics of a candidate,
which constitute his/her personality. Personality tests are very import
ant in the selection process, particularly in posts of supervisors and hi
gher executives. They assess emotional characteristics, motivation in
terests, ability to handle issues, capacity for inter-personal relations a
nd self-image. Personality tests are of three types: -
– (i) Objective tests- is tests that measure self-sufficiency and self-confide
nce.
Different types of tests

– (ii) Personality tests- is tests, which assess a candidate’s

interpretation for certain standard stimulus situations. This test
s candidates’ values, motives and personality.
– (iii) Situation tests- this test measures a candidate’s reacti
on when he/she is placed in a peculiar situation.
l In recent years tests have become an integral part of th
e selection process in different types of organizations i
n the country. It is more so in a majority of Government
undertakings. Testing is an important stage of selection
process. If tests are properly conducted, they can redu
ce the selection cost by reducing the large groups of ap
plicants to manageable levels.
 3.5 Induction

l After the candidate is finally selected the manage

ment will have to sell the job to him/her. When a ne
w member of staff joins an organization, it is important that
they are given good support in gaining an understanding of
their role and the organization.
l Induction is the process of socializing/familiarizing the ne
w employee/new comer/ with the organization ,with other e
mployees and with his/her job.
l Induction is designed to provide the new staff with informati
on in order to function comfortably and efficiently in the o
rganization
Areas/Contents of Induction

l Organizational Issue
– History of company
– Names and titles of key executives.
– Employees’ title and department.
– Layout of physical facilities
– Probationary period
– Products/services offered
– Overview of production process
– Company policy and rules
– Disciplinary procedures
– Safety steps
– Employees’ handbook
Areas/Contents of Induction

l Employee Benefits
– Pay scales, pay days
– Vacations, holidays
– Rest pauses
– Training Avenues
– Counseling
– Insurance,
– medical,
– recreation,
– retirement benefit
Areas/Contents of Induction

l Introduction
– To supervisors
– To co-workers
– To trainers
– To employee counselor
l Job Duties
– Job location
– Job tasks
– Job safety needs
– Overview of jobs
– Job objectives
– Relationship with other jobs
Purpose of Induction

l The objective of induction is to

– Remove fears (to make the newcomer feel at
home )
– Create good impression (to make the newcom
er feel develop a sense of pride in the organiz
ation)
– Provide valuable information on various matte
rs (acts as source of valuable information to th
e new comer)
 3.6 Placement
l It is fitting a person to the right job based on qualifi
cation, experience, qualities, and other factors. M
ore than anything else, placement of human resou
rces should be seen as a matching process. Gaps
between an individual’s skills and the job requirem
ents are common factors that lead to rejection of a
n applicant.
l Workers (due to misplacement) who are unable to
produce the expected amount and quality of work
can cost an organization a great deal of money an
Cont’d…

l Good selection and placement decisions are an impor

tant part of successful Human Resorce management.
Some would argue that these decisions are the most impo
rtant part.
l Productivity improvement for an employer may come from
changes in incentive pay plans, improved training, or bett
er job design; but unless the employer has the necessary
people with the appropriate Knowledge, Skill and Attitude
s in place, those changes may not have much impact.
l The very best training will not enable someone with little a
ptitude for a certain job to do that job well and enjoy it
Cont’d…

l Avoid wrong placement. It brings inefficiency an

d ineffectiveness in an organization. Proper pla
cement brings
– Better motivation
– Reduce cost of absenteeism and turnover
– Increase employee satisfaction
– Better utilization of resources