MODULE -2

HUMAN RESOURCE PLANNING

 Human Resource Planning is a systematic process of forecasting both the prospective

demand for and supply of manpower, and employment of skills with the objectives of the
organization.

 Human resources undoubtedly play the most important part in the functioning of an
organization. The term ‘resource’ or ‘human resource’ signifies potentials, abilities,
capacities, and skills, which can be developed through continuous interaction in an
organizational setting.

 The interactions, interrelationships, and activities performed all contribute in some way or
other to the development of human potential. Organizational productivity, growth of
companies, and economic development are to a large extent contingent upon the effective
utilization of human capacities.

DEFINITION:

 According To Coleman, “Human Resource Planning is the process of manpower

requirements of an organization and the means for meeting those requirements in order to
carry out the integrated plan of the organization “

 According To E.W. Vetter viewed human resource planning as “a process by which an

organisation should move from its current manpower position to its desired manpower
position. Through planning, management strives to have the right number and right kind of
people at the right places at the right time, doing things which result in both the organisation
and the individual receiving maximum long-run benefit.”

IMPORTANCE OF HRP:

1. Assessing Future Personnel Needs:

2. Foundation for Other HRM Functions:

3. Coping with Change:

4. Investment Perspective:

5. Expansion and Diversification Plans:

6. Employee Turnover:

7. Conformity with Government Guidelines:

8. International Expansion Strategies

Dept of MBA, BITM

9. Having Highly Talented Manpower Inventory:

1. Assessing Future Personnel Needs:

Whether it is surplus labour or labour shortage, it gives a picture of defective planning or

absence of planning in an organization. A number of organizations, especially public sector
units (PSUs) in India are facing the problem of surplus labour.
It is the result of surplus labour that the companies later on offer schemes like Voluntary
Retirement Scheme (VRS) to eliminate surplus staff. Thus, it is better to plan well about
employees in advance. Through HRP, one can ensure the employment of proper number
and type of personnel.
2. Foundation for Other HRM Functions: HRP is the first step in all HRM functions. So,
HRP provides the essential information needed for the other HRM functions like
recruitment, selection, training and development, promotion, etc.
3. Coping with Change: Changes in the business environment like competition, technology,
government guidelines, global market, etc. bring changes in the nature of the job. This
means changes in the demand of personnel, content of job, qualification and experience
needed. HRP helps the organization in adjusting to new changes.
4. Investment Perspective: As a result of change in the mindset of management, investment
in human resources is viewed as a better concept in the long run success of the enterprise.
Human assets can increase in value as opposed to physical assets. Thus, HRPis considered
important for the proper planning of future employees.
5. Expansion and Diversification Plans: During the expansion and diversification drives,
more employees at various levels are needed. Through proper HRP, an organization comes
to know about the exact requirement of personnel in future plans.
6. Employee Turnover: Every organization suffers from the small turnover of labour,
sometime or the other. This is high among young graduates in the private sector. This
necessitates again doing manpower planning for further recruiting and hiring.
7. Conformity with Government Guidelines: In order to protect the weaker sections of the
society, the Indian Government has prescribed some norms for organizations to follow.
For example, reservations for SC/ST, BC, physically handicapped, ex- servicemen, etc. in
the jobs. While planning for fresh candidates, HR manager takes into consideration all the
Government guidelines.
8. International Expansion Strategies: International expansion strategies of an organization
depend upon HRP. Under International Human Resource Management (IHRM), HRP
becomes more challenging. An organization may want to fill the foreign subsidiary’s key
positions from its home country employees or from host-country or froma third country.
All this demands very effective HRP.
9. Having Highly Talented Manpower Inventory: Due to changing business environment,
jobs have become more challenging and there is an increasing need for dynamic and
ambitious employees to fill the positions. Efficient HRP is needed for attracting and
retaining well qualified, highly skilled and talented employees.

The main objectives of HRP are

Dept of MBA, BITM
(i) Proper assessment of human resources needs in future.
(ii) Anticipation of deficient or surplus manpower and taking the corrective action.
(iii) To create a highly talented workforce in the organization.
(iv) To protect the weaker sections of the society.
(v) To manage the challenges in the organization due to modernization, restructuring and re-
engineering.
(vi) To facilitate the realization of the organization’s objectives by providing right number
and types of personnel.
(vii) To reduce the costs associated with personnel by proper planning.
(viii) To determine the future skill requirements of the organization.
(ix) To plan careers for individual employee.

MANPOWER PLANNING :

 Manpower planning is a very important tool and technique of human resource management.
It basically aims at maintaining and improving the ability of an organization to attain the
goals of an organisation by developing and utilising properly its human resources.

 It has made clear that the objectives of an organisation are decided and defined by the top
management. The role of human resource department is to sub-serve the overall objectives
by ensuring the availability and optimum utilisation of human resources. Therefore,
manpower estimation is required to be done properly which involves the estimation of the
quantity and quality of right type of people or human force.

 Manpower planning, the precursor of HRP, evolved to ensure that there was a systematic
approach to make people available to business to execute its plans. It was variously defined
as ‘a strategy for the acquisition, utilization, improvement, and preservation of an
enterprise’s human resources’.

 The conventional approach to manpower planning has, however, been criticized for taking
a static and mechanical stance, with the sole purpose of striking a perfect balance between
shortage and excess of manpower.

 This approach is described as a ‘tedious mathematical process’ as it envisions a utopian

world where people issues can be resolved through a logical and rational bases, without
considering the unpredictable dynamics of market forces, and the external and internal
contexts of organizations.

 HRP is the process to determine the way in which the business organization should progress
from its existing manpower position to the ideal position.

Dept of MBA, BITM

The main dimensions of HR planning, estimation of manpower are as follows:

(a) Total number of employees presently available and their types, nature of work, wages etc.

(b) A detailed job-description for each position of employee working in different

departments.

(c) Age distribution, qualifications, experience etc., of the employees.

(d) Estimation of short, medium and long-term manpower needs.

FACTORS AFFECTING HR PLANNING

A. External Factors
B. Internal Factors

External Factors Affecting HRP

 Economy: The state of economy has a direct influence on employment situations and the
HR needs of an organization.

 Technology: The march of technology means that skill obsolescence will also occur at a
faster pace, creating new workforce skills.

 Law: Various statutory requirements, judicial pronouncements, and executive actions also
create boundaries for HRP.

 Demography: Due to competitive pressures to keep the costs under wraps and also to
escape the rigors of statutory compliance, employers have been relying increasingly on
contingent workers.

 Geographic conditions: HRP is also impacted by local conditions, the availability of

suitable workforce in the neighboring labor market.

 Society: The trend for diversity and the rising numbers of women employees have
warranted a fresh look at reworking the traditional workplaces.

Internal Factors Affecting HRP

 Business strategy: HRP has to align itself to the evolving business strategies of the
organization and cannot remain stagnant.
 Company policies and strategies – Company policies and strategies relating to expansion,
diversification, alliances, etc. determines the human resource demand in terms of quality
and quantity.
 Human resource policies – Human resources policies of the company regarding quality
of human resource, compensation level, quality of work-life, etc., influences human
resource plan.
 Job analysis – Fundamentally, human resource plan is based on job analysis. Job
description and job specification determines the kind of employees required.

Dept of MBA, BITM

 Time horizons – Companies with stable competitive environment can plan for the long run
whereas the firms with unstable competitive environment can plan for only short- term
range.
 Type and quality of information – Any planning process needs qualitative and accurate
information. This is more so with human resource plan; strategic, organisational and
specific information.
 Company’s production operations policy – Company’s policy regarding how much to
produce and how much to buy from outside to prepare a final product influence the number
and kind of people required.
 Trade unions – Influence of trade unions regarding number of working hours per week,
recruitment sources, etc., affect the HRP.
 Other factors: The other internal factors affecting the HRP process include time horizon
(short- or long-term needs), organizational growth cycles (the needs at growth, maturity,
and decline vary), quality of information available (e.g., an organization with advanced HR
analytics and ERP will have access to more sophisticated analysis than a small startup).

BENEFITS OF HR PLANNING

1. Talent acquisition: HR departments, normally accountable for filling up vacancies, often

struggle to meet the recruitment time schedules, as there are dangers of recruitments done
under time pressure. Thus, HRP facilitates talent acquisition by:
a. Aligning the strategic planning with the headcount and talent planning.
b. Surfacing manpower demand and supply issues by costs, reporting relationship,
and by location.
c. Providing dashboards for managers on the impact of their hiring decisions and
future talent-acquisition priorities.
d. Minimizing employee costs and throwing lights on bottlenecks for employee
productivity.
2. Career development/succession planning: HRP also enables us to formulate suitablecareer
plans with back-up development strategies, to identify the potential leaders and take them
through the charted path of grooming and preparing them for future responsibilities.
3. Training: With an effective HR plan, an organization can update and draw up suitable
learning strategies to develop competencies that would give it the competitive edge over its
rivals. It observes the emerging trends and even can anticipate the types of training
programs that it needs to offer. HRP also helps the training and learning and development
strategies. It covers induction and on-boarding plans for new employees, and getting them
ready for performing and delivering on-skilled positions. The training input also includes
acclimatization with the culture of the organization, information about the company
products, services, organization structures, projects and initiatives, as also on personnel
policies and practices.

Dept of MBA, BITM

4. It checks the corporate plan of the organisation.
5. HRP offsets uncertainties and changes to the maximum extent possible and enables the
organisation to have right men at right time and in right place.
6. It provides scope for advancement and development of employees through training,
development, etc.
7. It helps to anticipate the cost of salary enhancement, better benefits, etc.
8. It helps to anticipate the cost of salary, benefits and all the cost of human resources
facilitating the formulation of budgets in an organisation.
9. To foresee the need for redundancy and plan to check it or to provide alternative
employment in consultation with trade unions, other organisations and government through
remodeling organisational, industrial and economic plans.
10. To foresee the changes in values, aptitude and attitude of human resources and to change
the techniques of interpersonal, management, etc.
11. To plan for physical facilities, working conditions and the volume of fringe benefits like
canteen, schools, hospitals, conveyance, child care centres, quarters, company stores, etc.
12. It gives an idea of type of tests to be used and interview techniques in selection based on
the level of skills, qualifications, intelligence, values, etc., of future human resource.
13. It causes the development of various sources of human resources to meet the organisational
needs.
14. It helps to take steps to improve human resource contributions in the form of increased
productivity, sales, turnover, etc.
15. It facilitates the control of all the functions, operations, contribution and cost of human
resources.

HRP PROCESS:

Dept of MBA, BITM

Environmental Scanning:
It refers to the systematic monitoring of the external forces influencing the organization. The
following forces are essential for pertinent HRP.
Economic factors, including general and regional conditions. Technological changes
Demographic changes including age, composition and literacy,
Political and legislative issues, including laws and administrative rulings Social concerns,
including child care, educational facilities and priorities.

By scanning the environment for changes that will affect an organization, managers can
anticipate their impact and make adjustments early.
Organizational Objectives and Policies:
HR plan is usually derived from the organizational objectives. Specific requirements in terms
of number and characteristics of employees should be derived from organizational objectives.
Once the organizational objectives are specified, communicated and understood by all
concerned, the HR department must specify its objective with regard to HR utilization in the
organization.
HR Demand Forecast:
Demand forecasting is the process of estimating the future quantity and quality of people
required to meet the future needs of the organization. Annual budget and long-term corporate
plan when translated into activity into activity form the basis for HR forecast.
Demand forecasting is influenced by both internal factors and external factors: external factors
include-competition, economic climate, laws and regulatory bodies, changes in technology and
social factors whereas internal factors are budget constraints, production level, new products
and services, organizational structure and employee separations.
Demand forecasting is essential because it helps the organization to
1. Quantify the jobs, necessary for producing a given number of goods,
2. To determine the nature of staff mix required in the future,
3. To assess appropriate levels in different parts of organization so as to avoid unnecessary
costs to the organization,
4. To prevent shortages of personnel where and when, they are needed by the organization. 5.
To monitor compliances with legal requirements with regard to reservation of jobs.
Techniques like managerial judgment, ratio- trend analysis, regression analysis, work study
techniques, Delphi techniques are some of the major methods used by the organization for
demand forecasting.
HR Supply Forecast:
Supply forecast determines whether the HR department will be able to procure the required
number of workers. Supply forecast measures the number of people likely to be available from
within and outside an organization, after making allowance for absenteeism, internal
movements and promotions, wastage and changes in hours, and other conditions of work.
Supply forecast is required because it is needed as it
1. Helps to quantify the number of people and positions expected to be available in future to
help the organization realize its plans and meet its objectives
2. Helps to clarify the staff mixes that will arise in future
3. It assesses existing staffing in different parts of the organization.

Dept of MBA, BITM

4. It will enable the organization to prevent shortage of people where and when they are most
needed.
5. It also helps to monitor future compliance with legal requirements of job reservations.
Supply analysis covers the existing human resources, internal sources of supply and external
sources of supply.
HR Programming:
Once an organization„s personnel demand and supply are forecasted the demand and supply
need to be balanced in order that the vacancies can be filled by the right employees at the right
time.
HR Plan Implementation:
HR implementation requires converting an HR plan into action. A series of action are initiated
as a part of HR plan implementation. Programmes such as recruitment, selection and placement,
training and development, retraining and redeployment, retention plan, succession plan etc
when clubbed together form the implementation part of the HR plan.
Control and Evaluation:
Control and evaluation represent the final phase of the HRP process. All HR plan include
budgets, targets and standards. The achievement of the organization will be evaluated and
monitored against the plan.
During this final phase organization will be evaluating on the number of people employed
against the established (both those who are in the post and those who are in pipe line) and on
the number recruited against the recruitment targets. Evaluation is also done with respect to
employment cost against the budget and wastage accrued so that corrective action can be taken
in future

HUMAN RESOURCE PLANNING AND DEMAND FORECASTING TECHNIQUES

 Human resource planning is a process used to predict future human resource requirements.
Human resource forecasting, also known as HR forecasting, generally utilizes past sales
data in order to more accurately estimate future staffing needs.

 HR forecasting begins with performing comprehensive job analyses and estimating

employee output levels. Factoring in the labor market and labor supply helps with both
human resource planning and resource management optimization.

 There are both quantitative and qualitative approaches for forecasting human resource
demands. While quantitative methods are heavily reliant on mathematical and statistical
analysis, qualitative forecasts generally depend more on managerial judgement techniques.

TOOLS FOR DEMAND FORECASTING

A. Qualitative Forecasting
B. Quantitative Forecasting

QUALITATIVE FORECASTING

Dept of MBA, BITM

1. Managerial Judgements:
 In this process, managers discuss and agree on a requirement of manpower. There are
two common ways of doing it. In the first approach, also known as the bottoms-up
approach, the assessment process starts at the level of the line managers who send their
proposals higher up through the hierarchy of the organization; the proposals finally get
looked in and approved by the top management. In the second approach, known as the
top-down approach, it is the top management that initiates the forecast that is examined
and concurred by the department heads.
 In a variation of the above, known as the participative or the two-way approach, the two
approaches are integrated. The line managers make their own assessment and project a
figure based on guidelines provided by the HR function. Concurrently, the top
management also makes a forecast. Thereafter, a committee consisting of line and HR
functional representatives examines the forecasts of both the above groups to decide on
the certain figure, which is then put up to the top management for the final approval.

2. Delphi Technique
 In this top-down method, a group of experts (internal and/or external) is called upon
to forecast demand, which are then summarized by the HR functionaries, and the
collated reports are sent back to the experts.
 Uniquely, the experts operate individually, and do not sit together, while making their
assessments . On the basis of the summarized views of all, the experts give further
comments. The cycle of reviews is repeated till all the experts come to a consensus. The
above technique, while being highly reliable, suffers from the limitation of being
expensive, time-consuming, and vulnerable to ego clashes between the experts causing
impasse and delayed decisions.
 A variation of the above is known as the nominal group technique, which is a group-
based forecasting technique. In this method, a group of four or five participants presents
their views regarding workforce requirements. These views are recorded and
discussions are only held afterward as the information is presented. The group takes a
decision based on a final ballot.

3. Unit Demand Forecasting

 In this method, the units (a department, a project team, or some other group of
employees) furnish certain workforce estimates on the logic that they are fully
conversant with what business activity will be undertaken by their units in future.
 The aggregated estimates for all departments constitute the total forecast for the
organization. This is also compared with the demand forecast prepared by the
workforce analysts.
 For example, a unit finds that 5% of its critical workforce will retire in a year’s time
and that, combined with an ambitious capacity expansion, the effect would hamper its
functioning. In a proactive response, if the unit recruits the critical employees in a
planned manner, the department managers will have time to become aware of the

Dept of MBA, BITM

 skills, abilities, and desires of their employees, and this could reveal a discrepancy
with the organizational forecast.

4. Replacement Planning/Allocation Planning

 Replacement planning: Manpower estimates are arrived at by using charting techniques
that plot current role holders and critical data about each of them. This often covers a
summary evaluation of performance and potential, age, time spent on present role, and
the length of service.
 Allocation planning: This method involves judgments about labor supply or demand on
the basis of the observation of the movement of employees across different roles at the
same organizational level.

QUANTITATIVE FORECASTING

1. Trend analysis:
This examines past employment levels against business variables to predict future
manpower levels. This is a quick forecasting technique using past ratios (e.g., between the
number of operators and output in a manufacturing unit) to predict future ratios while
allowing for some changes in the organization or its processes.

2. Regression analysis:
Regression analysis, in a manner similar to trend analysis, predicts the dependent variable
on the basis of understanding of certain independent variables. It is a refined statistical tool
to determine the best fit. In a simple linear regression, only one dependent and one
independent variables are studied. When the variables are more than 1, then it is multiple
regression, most uses of multiple regression emphasizes two or more independent variables

3. Ratio analysis:
Like trend analysis, this uses the ratio between some causal factor (such as production
volume) and the number of skilled operators to forecast the requirement (e.g., the number
of operators). It assumes that the output per person remains stationary. For example, in case
a skilled operator historically produces 1 million units per day, and that plans call for
increasing the output to 2 million units/day next year, then, if the output–operator ratio
remains the same, one new operator would be required for each line.

4. Work-study techniques:
In situations where the workload can be accurately measured, this technique can be
effectively used to predict the estimated total output and the activities for a specific time
span in future. When using this technique, the starting point could be the production budget,
drawn from the sales plan. Then finally, the number of man power is calculated based on
the number of hours required to yield the planned output. Work-study techniques work
where it is possible to accurately predict the budgeted figures.
5. Flow model:

Dept of MBA, BITM

This model bases the HR demand forecast on analyses of different kinds of movement of
employees over specific time periods in the past. The most basic model is known as the
Markov model. The steps followed in this model are as follows:
a. Decide on the target time span.
b. Establish employee categories known as states.
c. Count the annual movements, called flows, between states for several time periods.
These states could include gains (recruitment or transfer) or losses (death) or
changes in position levels or employment status.
d. Forecast the probability of movement from one state to another based on past trends.

Dept of MBA, BITM

ATTRIBUTES OF AN EFFECTIVE HR PLANNING,

 Future Oriented: Human resource planning is prepared to assess the future

requirement of manpower in the organization. It helps identify the size and composition
of resources for future purpose.

 Continuous Process: Human resource planning is a continuous process. The human

resource planning prepared today may not be applicable for future due to ever changing
external forces of the environment. Hence, to address such changing factors, the human
resource planning needs to be revised and updated continuously.

 Optimum Utilization Of Human Resources: Human resource planning focuses on

optimum utilization of resources in the organization. It checks how the employees are
utilized in a productive manner. It also identifies employees' existing capabilities and
future potentialities to perform the work.

 Right Kinds And Numbers: Human resource planning determines the right number
and kind of people at the right time and right place who are capable of performing the
required jobs. It also assesses the future requirement of manpower for organizational
objective
.
 Determination Of Demand And Supply: Human resource planning is a process of
determining demand for and supply of human resources in the organization. Then a
match between demand and supply estimates the optimum level of manpower.

 Environmental Influence: Human resource planning is influenced by environmental

changes, hence, it is to be updated as per the change occupied in the external
environment.

 Related To Corporate Plan: Human resource planning is an integral part of overall

corporate plan of the organization. It can be formulated at strategic, tactical and
operational levels.

Dept of MBA, BITM

 A Part Of Human Resource Management System As a part of total human resource
management system, human resource planning is regarded as a component or element
of HRM which is concerned with acquisition ans assessment of manpower. It serves as
a foundation for the management of human resource in an effective and efficient
manner.

 State of the economy: The state of businesses is directly affected by the cyclical
fluctuations of economic forces. These include investment climate, inflation rate, GDP
growth, and particularly, the unemployment rate. Low unemployment rate means tight
supply of skilled manpower and professionals, while an ascending unemployment
implies abundance of manpower at relatively cheap rate.

 Demographic factors: They provide a platform for countries to encash their

demographic dividend and leapfrog to a higher level of income-employment situation.
This prospect arises at a stage of demographic transition when the population pyramid
expands in the middle, implying a greater share of working age people in the total
population and thus a lower dependency ratio.

 Professional market conditions: Apart from assessing the general labour market
conditions, employers also keep an eye on the availability of potential resources in
targeted professions (programmers, instrumentation technicians financial analysts, etc.)
for recruitment. With the boom in several sunrise sectors, industries fought hard to
source project engineers, geologists, and investment bankers.

BARRIERS TO HRP
 Time frame: Many managers are focused on executing current-year results, but
workforce planning has typically addressed a longer time frame and doesn’t show
immediate gains that can help meet this year’s results.
 Data integrity concerns when ‘getting out of the gate’. Managers are reluctant to
review future plans when they feel that they can’t get a proper view of the current head
count.
 Control: Some managers have gut feelings and don’t want to reference data without a
compelling data story. There is no opportunity to shift this stance until managers
experience the actual pain that could have been avoided through workforce planning.
 Detail: Organizations have a hard time settling on the appropriate level of granularity
of workforce planning, or their job taxonomy. It’s generally understood that a
workforce plan has to distinguish one type of job from the next, but is it sufficient to
look at broad labor categories, narrower job families, individual jobs, or actual skillsets?
So many organizations get into self-imposed delays in rolling out their planning
program by trying to find the perfect level at which to plan. From a planning
perspective, however, if organizations could start by planning out high-level job
categories, this is a great start, and may be enough.

Dept of MBA, BITM

 Forecasting: Traditional forecasting methods are poor at predicting the actual
individuals at risk for turnover and retirement, and, thus, are not sufficiently actionable.
 Two recent trends serve to moderate: and sometimes even eliminate, these potential
roadblocks. The first is a broad-scale acceptance of data-driven decision-making that
is infusing the culture of organizations and making workforce planning inherently more
attractive. The second involves recent advances in predictive analytics and modeling
technology. These advances provide more compelling near-term actionable information
about granular employee-level supply risk, while simultaneously helping with demand-
based scenario planning. Coupled together, these trends have a profound ability to move
workforce planning from a ‘nice-to-have’ status to a critical program for high-
performance organizations.
 Lack of Support: People think that the human resource planning is unnecessary and
time consuming. Workforce can be arranged anytime at the time of requirement, with
attractive benefits and incentives so why human resource planning. They think it is an
easy task to manipulate the workforce in the organization.
 Wrong Perception about Human Resource Practitioner: In this competitive
business world it is very difficult and challenging to compete with the rivals without
formulating proper strategic plan. Many have the perception that the people who
formulate the human resource plan are not expert in business, as a result of which they
may commit error while formulating the human resource plan.
 Resistance from Employees: Employees and trade unions often resist human resource
planning. They feel that this planning increases their overall workload and regulates
them through productivity bargaining. They also feel that it would lead to wide spread
unemployment, especially of unskilled labour.
 Coordination with other Managerial Functions: There is generally a tendency on the
part of the human resource planners to remain aloof from other operating managers
and to become totally absorbed in their own world. To be effective human resource
planning must be integrated with other management functions.
 Expensive and Time Consuming: Human resource planning is an expensive and time
consuming process. Employers may resist human resource planning feeling that it
increases the cost of human resource.
 Uncertainties: Labour absenteeism, labour turnover, trade cycles, technological
changes and market fluctuations are the uncertainties which serve as constraints to
Human Resources planning. It is risky to depend upon general estimates of human
resource in the face of rapid changes in environment.
 Insufficient Information: In most of the Indian organisations, human resource
information system (HRIS) has not been fully developed. In the absence of reliable data
it may not be possible to develop effective human resource plans.
 Inaccuracy: Human resource planning involves forecasting the demand for and supply
of human resources. Therefore, it cannot be a cent percent accurate process. Longer the
time horizon, greater is the possibility of inaccuracy. Inaccuracy increases when
departmental forecasts are merely aggregated without critical review.

Dept of MBA, BITM

THE CHALLENGES FOR HRP

Human Resource Planning (HRP) involves the systematic assessment of an organization's

current and future human resource needs to ensure that it has the right talent in the right
positions at the right time. Several challenges can arise when implementing HRP. Here are
some of the common challenges:
1. Uncertain Future: Predicting the future workforce needs accurately is a challenge due
to the unpredictable nature of business environments, technological advancements,
economic shifts, and other external factors.
2. Rapid Technological Changes: Technological advancements can quickly render
certain skills obsolete while demanding new ones. HRP must account for the evolving
skill sets required in the workforce.
3. Globalization: Organizations may need to manage a workforce distributed across
different regions and cultures, which requires understanding and accommodating
various labor laws, cultural norms, and time zones.
4. Talent Shortages: Identifying and recruiting skilled talent can be challenging,
especially in industries facing a shortage of qualified professionals. This challenge is
exacerbated when multiple organizations compete for the same talent pool.
5. Skill Mismatches: Even when there's an available workforce, there might be a
disconnect between the skills possessed by potential employees and the skills required
for available positions.
6. Demographic Changes: Changes in demographics, such as aging populations and
generational shifts, can impact the availability of certain skill sets and influence
workforce dynamics.
7. Changing Work Models: The rise of remote work, gig economy, and flexible work
arrangements can complicate workforce planning, as the traditional 9-to-5 model might
not apply anymore.
8. Employee Turnover: High turnover rates can disrupt workforce stability and impact
productivity. HRP needs to address turnover by understanding its causes and
developing retention strategies.
9. Data Accuracy: HRP relies heavily on accurate data related to workforce
demographics, skills, and performance. Inaccurate or outdated data can lead to flawed
planning decisions.
10. Resistance to Change: Employees and management might resist changes proposedby
HRP, especially if they perceive these changes as threatening job security or established
work processes.

THE CHALLENGES FOR HR

 Change management
 Leadership development
 HR effectiveness measurement
 Organizational effectiveness

Dept of MBA, BITM

 Compensation
 Staffing: Recruitment and availability of skilled local labor
 Learning and development
 Staffing: Retention
 Benefits costs: Health & welfare

JOB ANALYSIS

▣ Job analysis is the systematic method of jobs to identify work activities, tasks, and
responsibilities, working conditions to perform the job.

▣ According to Edwin B. Flippo, “A job analysis is the process of collecting and studying
about the information related to operations and responsibility of a specific job.

PROCESS OF JOB ANALYSIS

Step 1: Identify purpose of job analysis

Step 2: Selecting the analysts
Step 3: Selecting the appropriate method
Step 4: Train the analysts
Step 5: Preparation of job analysis
Step 6: Collecting Data
Step 7: Review and verify data
Step 8: Develop a job description and job specification

How to perform / conduct a job analysis? You should do 8 steps as follows for conducting /
writing a job analysis.
1. Identify purpose of job analysis

You should identify purpose of job analysis because that will determine what job analysis
method, what data will be collected….

2. Selecting the analysts

You can choose analyst from professional human resource, line mangers, incumbents or
consultants.

3. Selecting the appropriate method

 Select representative positions to analyze because there may be too many similar jobs to
analyze, and it may not be necessary to analyze them all.
 Review background information such as organization charts, process charts, and job
descriptions of positions selected.

Dept of MBA, BITM

 Then identify methods of job analysis. There are many methods in job analysis, you should
pay attention to advantages and disadvantages of each method in order to choose suitable
one.
 Identify sample size of position.

4. Train the analysts: If you intend to use internal analysts you have to teach them how to
use the selected methods.

5. Preparation of job analysis:

* Communicate the project in the organization.
* Preparing the documentation, for example: interview questions, questionnaires.
6. Collecting data
* Collecting data on job activities, employee behaviors, working conditions, and human traits
*
* and abilities needed to perform the job.
* Using one or more of the job analysis methods to collect data.

7. Review and verify

* Consolidate the results. You must review all data collected. This will help you to confirm
that the information is factually correct and complete. How can review information?
* Review data with his or her immediate supervisor.
* Review data by technical conference (is a job analysis method).
* Review data with incumbents by interview.

8. Develop a job description and job specification

Implement the results into the company procedures according to the goal-setting. Develop a
job description and job specification from the job analysis information. A job description is a
written statement that describes the activities and responsibilities of the job, working conditions
and safety and hazards…A job specification summarizes the personal qualities, traits, skills,
and background required for getting the job done
Job Analysis in layman’s language means the procedure of gathering information about a job.
This process involves two sets of information:

A. JOB DESCRIPTION: This is a very vital document which is usually explanatory in

nature. It consists of both organizational as well as functional information. It provides
information as to the scope of activities, position of the job and the responsibilities. It gives
the employees a very clear picture of what is required of him to meet the goals ofhis job.
A good Job Description must consist of the following:
It should include the nature and scope of the job along with accountability.
A good Job Description should be lucid about the position, responsibilities &duties.
The complexity of the job.
The amount of skills required for that particular job.
How far are the problems consistent?
The level of responsibility the worker has for each stage of work.
Dept of MBA, BITM
CONTENTS OF JOB DESCRIPTION
Usually the Job Description consists of the following:
a) Job classification: This includes title of the job, alternate title if any, job code, division or
department etc. The title of the job designates the job properly and division or department
indicates which department and location does the employee work.
b) Job Summary: It serves two purposes here; one is that when the Job Title is not sufficient
it gives additional information on the job. Secondly it gives more descriptive information about
the particular job.
c) Duties and Responsibilities: This lists out the entire duties and responsibilities of a
particular job. Sometimes duties and responsibilities are also listed for particular skills and their
incidence of occurrence.
d) Relation to other jobs: This gives the employees a fair amount of picture as to the hierarchy
of the position. Like to whom they are reporting: senior, junior, etc.

B. JOB SPECIFICATION
Job Specification converts the job description to qualifications that are required for, in
performing the job. This is usually a statement which consists of qualification, characteristics,
traits etc, for an employee to possess to perform his duties. The first thing here is to prepare a
directory of all jobs and then the next step is to make a write up of each and every job.

CONTENT OF JOB SPECIFICATION

The following are the contents of Job Specification:
a) Physical Qualifications: These qualifications or specifications vary from job to job.
Physical Qualifications are nothing but the capabilities of employees. These include height,
weight, hearing, vision, capacity to handle machines etc.

b) Mental Qualifications: This includes the ability to interpret data, calculations, planning,
general knowledge, judgment, memory etc.

c) Social and Emotional specifications: This is vital for the role of Managers and
Supervisors. It includes emotional constancy and elasticity. It also includes the way they dress,
personality and relationship.

d) Behavioral Qualifications: This qualification is very important in selecting employees for

higher levels of management. This specification asks to depict the acts of the managers rather
than traits which cause those acts. This includes creativity, research, maturity level, dominance
etc.

JOB EVALUATION

▣ A job evaluation is a systematic way of determining the value/worth of a job in relation to

other jobs in an organization. It tries to make a systematic comparison between jobs to
assess their relative worth for the purpose of establishing a rational pay structure.

Dept of MBA, BITM

▣ Kimball and Kimball define job evaluation “as an effort to determine the relative value of
every job in a plant to determine what the fair basic wage for such a job should be.”

The process of job evaluation involves following steps:

1. Securing acceptance from employees after explaining the purpose and use of job
evaluation programme.

2. Creating job evaluation committee consisting of experienced employees, union

representatives and HR experts.

3. Deciding the job to be evaluated, which may represent the type of work performed in
the organisation.

4. Analysing and preparing job description.

5. Selecting method of evaluation, according to the job factors and organisational

demand.

6. Classifying the jobs on the basis of weightage and monetary values.

7. Installing the programme in the whole organisation after explaining it to employees.

To summarize, Job evaluation is associated with a process of establishing worth of different

jobs. Job evaluation offers a basis for ranking or grading different jobs and developing a
pay structure for them. It is the process of explaining the duties, authority relationships,
skills, condition of work and other relevant information related to jobs. It provides valuable
data and information to develop job description and specification

Dept of MBA, BITM

 documents. Job evaluation is a significant task of human resource manager which is done
in order to determine the value or worth of each job within the organization.

RECRUITMENT

▣ Recruitment refers to the overall process of identifying, attracting, screening, shortlisting,

and interviewing suitable candidates for jobs within an organization.

▣ Recruitment can also refer to processes involved in choosing individuals for unpaid roles.

▣ Edward.B.Flippo:

Recruitment is a process of searching for prospective employees and stimulating and

encouraging them to apply for the job”

SELECTION

▣ Selection is the process of identifying an individual from a pool of job applicants with the
requisite qualifications and competencies to fill jobs in the organization. This is
an HR process that helps differentiate between qualified and unqualified applicants by
applying various techniques.

▣ Selection is the process of choosing the most suitable candidates from those who apply for
the job. It is a process of offering jobs to desired candidates.

PURPOSE OR OBJECTIVES /IMPORTANCE OF RECRUITMENT

 A proper recruitment process can ensure long-term retention of selected candidates.

 Success in recruitment also means good return-on-investment or value for the money spent
on the recruitment process.

 In current times of globalization, more than at any earlier times, the trend is to build a
culturally diverse workplace, which is also facilitated by a properly orchestrated
recruitment process.

 It helps the organization by finding the necessary requirements by job analysis activities
and personnel planning.

 It helps to accumulate candidates with less cost.

 It helps in employing new and better-qualified workforce.

 It is a long-term strategy for improving the growth of a company.

 Capabilities and commitment of employees ensure an organization’s success.

 Raise organizational and individual value in both short and long term

Dept of MBA, BITM

RECRUITMENT POLICIES

 Recruitment and selection policy is a statement of norms and guidelines describing

the manner in which an organisation should conduct its recruitment and selection
process. The recruitment policy seeks to ensure transparency and absence of any bias
in recruitment and selection process; one that results in the appointment of the best
candidate, who comes through purely on merit and is compatible with the
organisational values, philosophy, and goals.

 A model recruitment and selection policy should have the following elements:

1. Respect for diversity

2. Ethical decision making

3. Merit based selection

4. Equal treatment for all

5. Procedural fairness

D. Seligman described four types of company positions on recruitment:

1. Passive non-discrimination: With a passive commitment not to discriminate based on

community and sex for hiring, promotion and pay.

2. Pure diversity-based: This is based on commitment to select the best talent based on an
expanded pool of candidates irrespective of sex or community.

3. Diversity-based: Recruitment with preferential hiring with a preferential treatment for

women and minority.

4. Hard quotas: With mandate to recruit or promote definite numbers.

FACTORS INFLUENCING / AFFECTING RECRUITMENT

 Recruitment is affected by two sets of factors: internal and external.

 The internal factors include primarily the recruitment policies of the organization,
as described above.

 The other internal factors include:

1. A well-structured and comprehensive HR Plan, which facilitates seamless sourcing

of manpower in a systematic and appropriate manner.

2. The size of the firm in as much as the complexities in recruitment planning and process
are generally inversely connected with the largeness of the organization.

3. Budgetary considerations: requiring pursuit of cost-effective ways of recruiting (e.g.,

use of social media instead of search firms).

Dept of MBA, BITM

 4. Stage in the maturity cycle of the businessimplying, for example, that an
organization in a decline stage would be far less inclined for recruitment than an
organization in the growth stage.

 External factors affecting recruitment are:

(1) Labor market conditions: A labour market in the classical sense meant a geographical
area inside which the dynamics of labour supply and labour demand determine the
price of labour. The surplus in supply would explain why unskilled labours struggle
to obtain even the statutorily fixed minimum wage, in the same way that the
scarcity in supply makes an Airline Pilot command salaries of their choice.

(2) Unemployment rate in the geography: The higher the unemployment rate, the larger
the number of applicants are for a given job. The national skill development program
by the government is a step in the direction of managing the issue of
unemployment by increasing the employment potential of a person through
building marketable skill sets.

(3) Political and legal environment.

(4) Technological changes

PROCESS OF RECRUITMENT

Strategic
Business Selection Orientation
Objectives

HR Plan Initial Screening Placement

Recruitment
Performance
Job Analysis
Appraisal

Dept of MBA, BITM

 The Recruitment Process is a sequential chain of activities with three distinct and inter-
connected stages: pre-recruitment, recruitment, and post-recruitment.

 It is also termed as the resourcing cycle. The core activities commence with the
identification of a vacancy and conclude with the selected new employee performing
his role to an acceptable standard. Recruitment can also be described as a hydra- headed
process. While the candidate is under a scanner by the organisations to demonstrate
his/her suitability for the given vacancy, the candidate is also gauging the organisation
as a suitable future employer.

 It is, therefore, imperative that the entire recruitment process is helmed in a manner that
not only ensures the selection of the most accomplished candidate(s), but also a degree
of satisfaction in the rejected candidates of having participated in a fair, transparent,
and professionally conducted process. Such an experience will enable him/her to apply
again for a job in case of a future vacancy, along with other suitable candidate.

1. Pre-recruitment
• This stage includes:
a. Business Strategy: The first step begins with the big picture of the organization: the
business strategy. In a scenario where the organization is venturing into new business,
the parameters of recruitment may vary from the traditional business. The entire
recruitment process may remain suspended in air if it does not have a visible linkage
with the business strategy.
b. HR Plan: The second step in the process is the HR Planning process of scanning the
environment, balancing the supply with demand, and arriving at the scenario of either
surplus or scarcity. It will end up with an HR Program which will include the HR Plan
of identified vacancies with the numbers, skill requirements of the manpower required
for a specific period. Increasingly in respect of the identified vacancies, a more strategic
and critical approach may be taken.
c. Job Analysis: The next step is the stage where the jobs are analyzed in minute detail to
cull out the requirements of skill. The choice is for the organizations to adopt
approaches suiting its needswhether based on competencies or the classical processes
of job analysis resulting in formal job descriptions and Job specifications. The exercise
should ideally throw up specifications accurately describing the duties and requirements
of the job as also the skills, aptitudes, knowledge, experience, qualifications, and
personal qualities required to discharge the responsibilities in an appropriate manner.
2. Recruitment
• This stage includes:
a. Core recruitment process: In drawing up its recruitment plan, the organization aims
to align the interests of the two parties by creating incentives for the most desirable
candidates to apply, while keeping out the less qualified candidates from the mix.
Through the recruitment process, organizations primarily try to attract the highest
possible number of candidates and then filter out to select people who have the best

Dept of MBA, BITM

 potential and fit their specific criteria. Organizations that recruit the more qualified
applicants are typically ones that have a larger applicant pool.
 Methods/Strategies to attract candidates for the recruitment process include:
• Better compensation and benefits than competitors
• Promotional gifts and joining bonus
• Pre-placement talk
• Print and digital advertisement
• Company website

b. Screening: The objective of the next stagescreening, is to make available an

adequate number of qualified candidates, based on which a selection can be done in a
smooth manner without loss of time over volumes of unsuitable applications.
Search firms eminently serve the purpose by providing a small, manageable number of
suitable candidates, in a relatively cost-effective and professional manner, in
comparison to the traditional mode of advertisements campaigns which often require
special efforts for eliminating mountainous heaps of ineligible applicants.
c. Selection: The last stage in core recruitment activity is selection. The short list of
candidates generated at the end of the recruitment stage is finally funnelled on the basis
of a choice of instruments into the desired number of candidates who are to be offered
employment.
Unlike the other stages of recruitment, where candidates remain in the background, this
is the only stage in recruitment processes in which the candidates have a direct and most
powerful interface with the organization. Potentially, it is also the most negative part of
the process, where the candidate can face rejection.
A critical success factor in selection stage is the choice of instruments of assessments
which can accurately predict the perfect person job fit. Interviews, in various forms,
still rule the selection roost in most organizations.

3. Post-recruitment
• This stage includes:
a. Orientation/onboarding: The post-selection stage starts with the new recruit. The first
step in it is orientation/onboarding. Onboarding aims at making the new recruits
engaged and productive in a short time through a series of structured activities.
Orientation process is intended to familiarize the new hires about the organizations
policies and practices, the benefits, and the cultures through a process ofsocialization.
Effective, carefully planned orientation and onboarding processes can reduce start-up
costs and prevent employee turnover by helping new employees to adjust to their job
and work environment with a positive attitude and increasing motivation.
b. Placement: Placement is the allotment of individuals to specific jobs after a reasonable
period of observation and assessment. It is based on several factors including skill level,
work and educational experience, interview results, references, and consultation
between the line and the human resources function. Following

Dept of MBA, BITM

 placement, ongoing training programs enables the fresh hires to become comfortable
and increasingly proficient in performing their jobs.
c. Performance Appraisal: The last stage of the recruitment process is the stage of
performance appraisal. The performance of the new employee has been monitored over
a period of time and feedback given on periodical review of performance. The employee
starts getting familiar with a key business process of goal setting, performance tracking,
and feedback/reviews for improvement. The end point of the recruitment process cycle
is also where the rubber meets the road, and the real test of an effective recruitment
policy is in the performance of the new recruits to an acceptable standard.

SOURCES OF RECRUITMENT/ RECRUITMENT STRATERGY/ METHODS

OF RECRUITMENT

Internal Recruitment External Recruitment

Advertise the vacant position to Advertisement

your employees

From temporary to permanent Walk-Ins

Employee Referrals Search on the Internet

Appointment of Promotion or Wanted Signboards

transfers

Retired/Retrenched employees as a Consultants

temporary or contract position :

Present temporary employees or Employee Exchange

contract position to permanent
position

Sources of Internal Recruitment

Hiring internally is a recruiting system through which current employees can be identified
and considered for other jobs / positions in an organization.

Dept of MBA, BITM

 I. Advertise the vacant position to your employees

(Circulars/Intranet advertisement/news mail): advertising a job position through

internal channels could motivate any staffs who think they have a chance of getting the job
to work harder to prove them. By raising their efforts, their results will often improve, too-
not a bad side effect.
Here are some of the ways you could advertise to your own staff
i. Circulate the jobs opportunity in a “News” mail.
ii. Keep an updated Jobs/careers section on your company internet.
iii. Post the job on your corporate website if you don’t have an internet.
iv. Pin the job ad on your company notice board. Make the ad eye-catching.

II. From temporary to permanent:

Organizations find this source to fill the vacancies relatively at the lower level owing to the
availability of suitable candidates or trade and pressure or in order to motivate themon
the present job.

III. Employee Referrals:

 This can be a good source of recruitment. When employees recommend successful

referrals, they (former) are paid monetary incentives which are called finder fees.
Employees can develop good prospects for their families and friends by acquainting them
with the advantages of a job with the company, furnishing cards of introduction, and then
encourages them to apply.
 This is a very effective means as many qualified people can be reached at a very low cost
to the company. The other advantages are that the employees would bring only those
referrals that they feel would be able to fit in the organization based on their own
experience. The organization can be assured of the reliability and the character of the
referrals. In this way, the organization can also fulfill social obligations and create goodwill.
 Regardless of what system is used, as with external recruitment, employee referral
programs used internally may need to rely on formal programs with recognition for
participation to get employees actively participating in making referrals. Moreover, they
need to be educated on eligibility requirements to ensure that qualified personnel are
referred.

IV. Appointment of Promotion or transfers:

Promotions and transfers from among the present employees can be a good source of
recruitmeqnt.

Dept of MBA, BITM

  A promotion is the movement to another job in a higher job classification and will result
in a title change. It is an advancement of employee to a higher post with greater
responsibilities and higher salary, better service conditions and thus higher status.

 Companies can give promotion to existing employees. This method of recruitment

saves a lot of time, money and efforts because the company does not have to train the
existing employee. Since the employee has already worked with the company. He is
familiar with the working culture and working style. It is a method of encouraging
efficient workers.

 Promotion to higher positions has several advantages. They are

 It is good public relations.

 It builds morale

 It encourages competent individuals who are ambitious.

 It improves the probability of a good selection, since information on the

individual’s performance is readily available.

 It is cheaper than going outside to recruit.

 Those chosen internally are familiar with the organization

 When carefully planned, promoting from within can also act as a training device
for developing middle-level and top-level managers.

Another way to recruit from present employees is transfer without promotion. Transfers
are often important is providing employees with a broad-based view of the company,
necessary for future promotions.

V. Retired/Retrenched employees as a temporary or contract position :

 Generally a particular organization retrenches the employee due to lay-off. The

organization takes the candidates for employment from the retrenched from the retrenched
employees due to obligation, trade union pressure and the like.

 Sometimes the organizations prefer to re-employ their retired employees as a token of

their loyalty to the organization or to postpone some inter-personal conflicts for promotion etc.
such employees are sourced as a temporary or for contract position so that the business is
streamed.

VI. Present temporary employees or contract position to permanent position: With a tight
labor market and an unemployment rate floating around 3.7 percent, there are signs that
some employers facing worker shortages are more willing to rehire their retirees or other
former employees.

Dept of MBA, BITM

VII. Former employees for part time/freelance/work at home: Former employees are also
an internal source of applicants. Some retired employee may be willing to come back to
work on a part-time basis or may recommend someone who would be interested in working
in our company. Sometimes, people who have left the company for some reason or other
are willing to comeback and work. Individuals, who left for other jobs, might be willing to
come back for higher emoluments. And advantage with this source is that the performance
of these people is already known

VIII. Dependent or relatives of deceased and disabled employee: some organizations with a
view to developing the commitment and loyalty of not only the employee but also his
family members and to build up image provide employment to the dependents of deceased,
disabled and present employees. Such organizations find this source as an effective source
of recruitment.

External recruitment is the evaluation of open pool of job candidates, other than
existing staff, to check whether there are any enough talented or able to fill requirements
and perform existing employment opportunities.

I. Advertisement
a. It is an external source which has got an important place in recruitment procedure. The
biggest advantage of advertisement is that it covers a wide area of market and scattered
applicants can get information from advertisements. Medium used is Newspapers and
Television. A convenient way to attract job applicants is to write an ad that can be
placed in newspapers, trade journals, and the like. Advertisements can also be recorded
and placed on radio or television. Cable television channels, for example, sometimes
have ―job shows.‖ Advertisements can be very costly and need to be monitored
closely for yield. Advertisements in some periodicals may yield more and better
qualified candidates than others. By carefully monitoring the resultsof each ad, the
organization can then make a more informed decision as to which ads should be run
next time a position is vacant. To track ads, each ad should be coded to assess the yield.
Then, as resumes come into the organization in response to the ad, they can be recorded,
and the yield for that ad can be calculated. Coding an ad is a very straightforward
process.Like: In Newspaper, TV, Radio, Internet

II. Walk-Ins
This is again a direct form of recruitment wherein the prospective candidates are invited
through an advertisement to come and apply for the job vacancy. Here, the specified date,
venue, and time are mentioned, and the candidates are requested to come and give interviews
directly without submitting their applications in advance.

III. Search on the Internet

As opposed to actively posting jobs online, another (but not mutually exclusive) means of
recruiting on the Web is to search for applicants without ever having posted a position. Under
this process, applicants submit their resumes online, which are then forwarded to employers

Dept of MBA, BITM

when they meet the employer‘s criteria. Such systems allow searching the databases according
to various search criteria, such as job skills, years of work experience, education, major, grade-
point average, and so forth. It costs applicants anywhere from nothing to $200or more to post
their resumes or other information on the databases.

IV. Wanted Signboards

Signboards like ‗Wanted‘ are posted at the factory front gate to recruit blue collar workers.

V. Consultants
These are agencies who contact, screen, and present applicants to employers for a fee. The fee
is contingent on successful placement of a candidate with an employer and is a percentage
(around 25%) of the candidate‘s starting salary. During difficult economic periods, employers
cut back on the use of these agencies and/or attempt to negotiate lower fees in order to contain
costs. Care must be exercised in selecting an employment agency. It is a good idea to check
the references of employment agencies with other organizations that have already used their
services. Allegations abound regarding the shoddy practices of some of these agencies. They
may, for example, flood the organization with resumes. Unfortunately, this flood may include
both qualified and unqualified applicants.
VI. Employment Exchange
An employment exchange is an office set up by the government for bringing together as quickly
as possible those people who are in search of employment and those employers who are looking
for suitable candidates. Employment exchanges register unemployed people and maintain the
records of their names, qualifications, etc.
The employers on their part intimate the exchange about the vacancies which occur in their
factories and types of employees they require for filling up these vacancies. Whenever any
vacancy is intimated, the exchange selects some persons from among the employment seekers
already registered with it and forwards their names to the employers for consideration.

VII. Campus Recruitment

When companies are in search of fresh graduates or new talent they opt for campus recruitment.
Companies approach colleges, management, technical institutes, make a presentation about the
company and the job and invite applications. Interested candidates who have applied are made
to go through a series of selection test and interview before final selection.

EVALUATION OF RECRUITMENT PROCESS:

Evaluating the recruitment process is crucial to ensure its effectiveness and efficiency in
attracting and selecting the right candidates for the organization. Here are some key aspects to
consider when evaluating the recruitment process:

Dept of MBA, BITM

 ⦿ Time-to-Fill: Measure the time taken from the initiation of the recruitment process to
the final selection of a candidate. A lengthy and slow recruitment process can result in
losing top talent to competitors.
⦿ Cost-per-Hire: Calculate the total cost incurred during the recruitment process,
including advertising expenses, agency fees, HR staff time, and other associated
costs. It's essential to keep recruitment costs under control.
⦿ Quality of Hire: Assess the performance and fit of candidates who were hired through
the process. This can be done by tracking their performance metrics, productivity, and
retention rates.
⦿ Source of Hire: Analyze where successful candidates are coming from (e.g., job
boards, referrals, social media, career fairs, etc.). This helps to identify the most
effective recruitment channels and allocate resources accordingly.
⦿ Applicant Conversion Rate: Measure the percentage of applicants who successfully
move through each stage of the recruitment process. A low conversion rate may
indicate issues in the selection process or candidate experience.
⦿ Diversity Metrics: Evaluate the diversity of the applicant pool and the diversity of
candidates who were ultimately hired. A diverse workforce can bring various
perspectives and contribute to an inclusive work environment.
⦿ Candidate Experience: Gather feedback from candidates about their experience during
the recruitment process. A positive candidate experience can improve the employer
brand and attract more top talent.
⦿ Feedback from Hiring Managers: Collect feedback from hiring managers about the
quality of candidates presented, the responsiveness of the HR team, and overall
satisfaction with the recruitment process.
⦿ Regulatory Compliance: Ensure that the recruitment process complies with all relevant
laws and regulations, such as equal employment opportunity (EEO) guidelines and data
privacy laws.
⦿ Retention Rate: Monitor the retention rate of employees hired through the recruitment
process. High turnover shortly after recruitment might indicate misalignment between
candidate expectations and the actual job.
⦿ Benchmarking: Compare the recruitment process metrics with industry benchmarks to
gauge its competitiveness and identify areas for improvement.
⦿ Continuous Improvement: Continuously review and refine the recruitment process
based on feedback and data analysis. Implement changes to enhance the process and
align it with the organization's evolving needs.

FUTURE TRENDS IN RECRUITMENT:

As the business landscape evolves and technology continues to advance, several future
trends are likely to shape the recruitment process. Here are some key trends to watch out
for:
⦿ Artificial Intelligence (AI) in Recruitment: AI-driven tools and algorithms will playa
significant role in streamlining the recruitment process. AI can assist in candidate
sourcing, resume screening, chatbot interactions for candidate queries, and even

Dept of MBA, BITM

 conducting initial interviews. This can save time, reduce bias, and improve the overall
candidate experience.
⦿ Big Data and Predictive Analytics: HR departments will increasingly harness big data
and predictive analytics to make data-driven decisions in recruitment. Analyzing past
hiring patterns, candidate behavior, and performance metrics can help identifythe best
sources for talent, optimize job descriptions, and predict candidate success.
⦿ Remote and Virtual Hiring: The trend of remote work, accelerated by the COVID-
19 pandemic, is likely to continue. Organizations will adopt virtual hiring methods,
such as video interviews, virtual job fairs, and online assessments, to attract and assess
candidates from anywhere in the world.
⦿ Employer Branding and Employee Value Proposition (EVP): In a competitive job
market, organizations will focus more on building a strong employer brand and a
compelling EVP. Candidates are increasingly looking for companies that align with
their values and offer a positive work culture, career development opportunities, and
flexible work arrangements.
⦿ Skills-Based Hiring: Degrees and traditional qualifications will remain essential, but
there will be a growing emphasis on skills-based hiring. Companies will seek
candidates with the right skills and abilities, regardless of their educational
backgrounds.
⦿ Candidate Experience Optimization: Providing a positive candidate experience will
become a top priority for organizations. User-friendly application processes,
personalized communication, and prompt feedback will be crucial to attracting and
retaining top talent.
⦿ Diversity, Equity, and Inclusion (DEI) in Recruitment: Organizations will focus
on fostering diversity in their workforce and promoting inclusivity in the recruitment
process. There will be efforts to eliminate bias in hiring decisions and ensure equal
opportunities for all candidates.
⦿ Gamification and Skill Assessments: Gamified assessments and skill-based challenges
will be used to evaluate candidates' abilities in a more engaging and interactive manner,
giving recruiters a better understanding of their capabilities.
⦿ Employee Referral Programs: Employee referrals will continue to be an effective and
reliable source of quality candidates. Companies may invest more in incentivizing
employees to refer suitable candidates.
⦿ Social Media and Talent Pooling: Social media platforms will play a vital role in talent
acquisition. Companies will proactively engage with potential candidates on platforms
like LinkedIn and build talent pools for future hiring needs.

Dept of MBA, BITM

SELECTION PROCESS

1. Preliminary Interview: The preliminary interview is also called as a screening

interview wherein those candidates are eliminated from the further selection process
who do not meet the minimum eligibility criteria as required by the organization.
Here, the individuals are checked for their academic qualifications, skill sets,
familybackgrounds and their interest in working with the firm. The preliminary
interview is less formal and is basically done to weed out the unsuitable candidates
very muchbefore proceeding with a full-fledged selection process.
2. Receiving Applications: Once the individual qualifies the preliminary interview he is
required to fill in the application form in the prescribed format. This application
contains the candidate data such as age, qualification, experience, etc. This information
helps the interviewer to get the fair idea about the candidate and formulate questions
to get more information about him.
3. Screening Applications: Once the applications are received, these are screened by the
screening committee, who then prepare a list of those applicants whom they find
suitable for the interviews. The shortlisting criteria could be the age, sex, qualification,
experience of an individual. Once the list is prepared, the qualified candidates are called
for the interview either through a registered mail or e-mails.
4. Employment Tests: In order to check the mental ability and skill set of an individual,
several tests are conducted. Such as intelligence tests, aptitude tests, interest tests,
psychological tests, personality tests, etc. These tests are conducted to judge the
suitability of the candidate for the job.
5. Employment Interview: The one on one session with the candidate is conducted to
gain more insights about him. Here, the interviewer asks questions from the applicant
to discover more about him and to give him the accurate picture of the kind of a job he
is required to perform.

Dept of MBA, BITM

 Also, the briefing of certain organizational policies is done, which is crucial in the
performance of the job. Through an interview, it is easier for the employer to understand
the candidate’s expectations from the job and also his communication skills along with
the confidence level can be checked at this stage.
6. Checking References: The firms usually ask for the references from the candidate to
cross check the authenticity of the information provided by him. These references could
be from the education institute from where the candidate has completed his studies or
from his previous employment where he was formerly engaged. These references are
checked to know the conduct and behavior of an individual and also his potential of
learning new jobs.
7. Medical Examination: Here the physical and mental fitness of the candidate are
checked to ensure that he is capable of performing the job. In some organizations, the
medical examination is done at the very beginning of the selection process while in
some cases it is done after the final selection.
Thus, this stage is not rigid and can take place anywhere in the process. The medical
examination is an important step in the selection process as it helps in ascertaining the
applicant’s physical ability to fulfill the job requirements.
8. Final Selection: Finally, the candidate who qualifies all the rounds of a selection
process is given the appointment letter to join the firm.
Thus, the selection is complex and a lengthy process as it involves several stages than
an individual has to qualify before getting finally selected for the job.

EFFECTIVENESS OF SELECTION PROCESS

 Reliability: Reliability, in the context of workforce selection, can refer to the following
issues: temporal or ‘re-test’ stability where the effectiveness of a selection tool is assessed
by consistency of results obtained over time.
 Validity: This is described as the extent to which the selection method predicts one or more
important criteria
 Utility: concerns the commercial benefits accrued from the use of a selection method. The
basic formula involves estimating the increase in revenue as a function of the use of the
selection method after subtracting the cost of the method.

SELECTION TOOLS

• Work samples: These are tests in which a sample of the job is performed by the
candidate to ascertain his effectiveness in real situation.
• Cognitive tests: They are generally used for entry level jobs not requiring technical
education. It tests the candidate’s mental ability to do the job.(reasoning, mental ability
etc)
• Structured interviews: These two kinds of structured interviews are common.
Situational/behavioural interviews use future scenarios with ‘what if’ questions,
basedon critical challenges in the job. Criterion-based questions are standard questions
related to all aspects of the job prepared beforehand to test the technical knowledge or

Dept of MBA, BITM

specific skills of the candidate.

Dept of MBA, BITM

 • Assessment centres: In a span of two/three days of offsite camp, candidates are
administered a battery of tests including role plays, group exercises, presentation, in-
tray, and psychometric assessments under the watchful eyes of multiple assessors to
comprehensively test the managerial and professional competencies of the candidate.
• Personality Tests: Tests the personjob fit on parameters not available in the resume.
• Bio-data or CV: It is drawn from the biographical details of earlier successful role
holders. It aims to predict the right kind of candidates who will succeed in the job.
• Unstructured Interviews: Unplanned interviews, whose effectiveness will vary based
on the experience and the skill of the interviewer.
• Reference Checks: Feedback sought from the erstwhile superior officers of the
candidate, based on information provided by him/her.
• Written Tests: Tests to ascertain the technical knowledge of the candidate especially
for jobs requiring a threshold of technical knowledge

FACTORS INFLUENCING SELECTIONS:

The selection process for hiring candidates is influenced by various factors that help
employers make informed and effective hiring decisions. These factors can be broadly
categorized into internal and external factors. Here are the key factors influencing
selections:

INTERNAL FACTORS:

⦿ Job Requirements: The specific skills, qualifications, experience, and competencies

needed for the job play a significant role in the selection process. Employers look for
candidates who possess the necessary job-related attributes to perform the role
successfully.
⦿ Organizational Culture and Fit: Employers consider whether the candidate's values,
personality, and work style align with the organization's culture. Cultural fit is crucial
for ensuring the candidate will thrive in the work environment and collaborate well with
the team.
⦿ Budget and Compensation: The organization's budget for the position and the
competitive compensation package offered to candidates can influence the
attractiveness of the job and the pool of applicants.
⦿ Workforce Planning: The organization's strategic workforce planning may influence
the selection process. For example, if there is a need to build specific skills or diversity
in the workforce, it will be a consideration during candidate selection.
⦿ Employee Referrals: Employee referrals can be a powerful influence on selections.
Referred candidates often have a higher chance of being hired as they come with a
recommendation from an existing employee, which adds a level of trust.
⦿ Internal Candidates: In some cases, internal candidates within the organization may
be considered for the position. The organization evaluates whether promoting from
within would be more beneficial than hiring externally.

Dept of MBA, BITM

EXTERNAL FACTORS:

⦿ Labor Market Conditions: The availability of qualified candidates in the labor market
can significantly impact the selection process. In a competitive job market with a
shortage of skilled workers, employers may need to adjust their selection criteria or
offer more attractive packages.
⦿ Economic Conditions: Economic factors, such as economic growth, industry trends,
and business outlook, can influence hiring decisions. During times of economic
uncertainty, organizations may be more cautious about expanding their workforce.
⦿ Technology and Industry Trends: Technological advancements and industry trends
may require specific skills and expertise, influencing the selection criteria to identify
candidates with the right capabilities.
⦿ Legal and Regulatory Considerations: Employment laws and regulations influence
the selection process to ensure compliance with equal employment opportunity (EEO)
requirements, anti-discrimination laws, and other relevant legislation.
⦿ Demographics: Demographic factors, such as age, gender, ethnicity, and disability
status, may influence diversity initiatives and impact hiring decisions to create a more
inclusive workforce.
⦿ Social and Cultural Factors: Social and cultural trends can influence what candidates
prioritize in their job search, such as work-life balance, flexible work arrangements, or
environmental sustainability.
⦿ Market Positioning and Employer Branding: The organization's reputation, employer
brand, and market positioning can impact the quality of candidates attracted to the
selection process.
⦿ Geographic Location: The location of the job and the willingness of candidates to
relocate or commute can also affect the candidate pool and the selection process.

IMPORTANT QUESTIONS:
1. What do you mean by Employee referrals? 3m
2. Outline the steps involved in HRP? 7m
3. Differentiate between Job Description and Job specification with example? 3m
4. Describe various sources/ methods of Recruitment? 10m
5. Briefly explain the various selection tests? 7m
6. What is Job Analysis? Explain process of Job Analysis? 7m
7. What is Job Evaluation? Explain the process of Job evaluation? 7m
8. What is HRP? 3m
9. Elaborate the factors influencing the HRP and Recruitment? 10m
10. Describe the tools for Demand Forecasting? 10m
11. Explain the Recruitment Process? 10m
12. Explain the Recruitment Stratergy? 7m
13. Explain the Process of Training? 7m
14. Explain the Selection Process? 7m
15. Describe attributes of an Effective HRP? 7m

Dept of MBA, BITM

16. Enumerate the factors influencing selections?7m
17. Elaborate the future trends in recruitment? 7m
18. Explicit the evaluation of recruitment process? 7m
19. What do you mean by Employee referrals? 3m
20. Outline the steps involved in HRP? 7m
21. Differentiate between Job Description and Job specification with example? 3m
22. Describe various sources/ methods of Recruitment? 10m
23. Briefly explain the various selection tests? 7m
24. What is Job Analysis? Explain process of Job Analysis? 7m
25. What is Job Evaluation? Explain the process of Job evaluation? 7m
26. What is HRP? 3m
27. Elaborate the factors influencing the HRP and Recruitment? 10m
28. Describe the tools for Demand Forecasting? 10m
29. Explain the Recruitment Process? 10m
30. Explain the Recruitment Stratergy? 7m
31. Explain the Process of Training? 7m
32. Explain the Selection Process? 7m
33. Describe attributes of an Effective HRP? 7m

Dept of MBA, BITM

34. Enumerate the factors influencing selections?7m
35. Elaborate the future trends in recruitment? 7m
36. Explicit the evaluation of recruitment process?

Dept of MBA, BITM