hrm

1.  Chapter -2
HUMAN RESOURCE PLANNING
“Human resource planning is a strategy for the
acquisition, utilization, improvement and
preservation of an organization human resources.
HRP is a plan of action formulated to meet future
human resources needs. HRP contains the TWO
important aspects:
1. Estimating the required work force
2. Staffing polices and programmes

2. 1. Estimating the required work force
It includes:
 Forecasting the number of employees of
various categories required by the firm for
a given period.
 This is a long range activity taken up by
the firm & hence it should estimate the
human resources required for a specific
period.

3. 2. Staffing polices and programmes
It includes
Mode of selection of staff, maintaining human resources
data periodical reporting of manpower
objectives, develop measure for utilization of human
resources, effective work allocation to improve the
quality of work& utilize the work to maximum.
Policy also emphasis to take up research activity for
continuously assessing the quality of work & find out
underutilization of the capacity of human resources& to
suggest remedial measures to rectify such
underutilization, assessing the economic factors…..

4. Definitions
E.W. Vetter ----as “a process by which an organization
should move from its current manpower position to its
desired manpower position. Through planning,
management strives to have the right number & right
places at the right time, doing things which result in
both the organization & the individual receiving
maximum long-run benefit.
P. Bruce Colemn--- “the process of determining
manpower requirements & the means for meeting those
requirements in order to carry out the integrated plan
of the organization”

5. Purposes of Human Resource
Planning
 1. Setting goals and objectives
 2. Examining the effects of
alternative human resource
policies and programs
4.3

6. The Human Resource Planning
Process
 1. Project future human resource supply
 2. Forecast future human resource needs
 3. Compare forecast needs with projected supply
 4. Plan policies and programs to meet human resource
needs
 5. Evaluate human resource planning effectiveness
4.5

7. Objectives of HRP
To recruit & retain the human resource of required quantity
& quality
To forecast the employees turnover & make the arrangements
for minimizing turnover & filling up of consequent vacancies
To meet the needs of programmes of expansion,
diversification
To foresee the impact of technology on work, existing
employees & future human resource requirements
To improve the standards, skill, knowledge, ability, discipline

8. To assess the surplus or shortage of human resources & take
measure accordingly
To maintain congenial industrial relations by maintaining
optimum level & structure of HR
To minimize imbalances caused due to non-availability of
human resources of right kind, right number in right time &
right place
To make the best use of its human resources
 to estimate the cost of human resources.

9. Need
 For employee replacement of death, retirement & transfer
 To provide skilled workers to increase productivity
 to optimize the organizational resources
 to face the problem of high labor turnover
 To meet the requirement of expansion and diversification
 to meet the challenges of changing technology
 To balance surplus-deficit manpower.

10. Advantages of HRP Disadvantages HRP
Improves productivity Disruption in flow of
work
Reduces excessive labor
turnover Less job satisfaction
Absenteeism is  high cost of production
minimized
 constant headache for
Optimum utilization of management personnel
HR in organization
Enhances employees
morale

11. External factors
1. Government polices Internal factors
2. Level of economic 1. Strategies of the company
development including
future supply of HR’s 2. Human resource policy of the
company
3. Business environment
3. Formal & informal groups
4. Information technology 4. Job analysis
5. Natural factors 5. Time horizons
6. Outsourcing 6. Type & quality of information
7. International factors 7. Company’s production
operations policy
8. Trade unions

12. Process of Human resource planning
1. Analyzing organizational plans
2. Demand forecasting: Forecasting the overall human
resource requirements in according with the organizational
plans
3. Supply forecasting: Obtaining the data & information
about the present inventory of human resources & forecast
the future changes in the human resource inventory
4. In case of future deficit forecast the future supply of human
resources from all sources with reference to plans of other
companies

13.  5. In case of future surplus, plan for
redeployment, retrenchment & lay-off
 6. estimating the net human resource requirements
 7. plan for recruitment, development & internal
mobility if future supply is more than or equal to net
human resource requirements
 8. plan to modify or adjust the organizational plan if
future supply will be inadequate with reference to
future net requirements.

14. Job Analysis
 Job analysis is a systematic investigation of the
tasks, duties and responsibilities necessary to do
a job.
 Job analysis is the process of collecting job
related information

15. Objectives/Purpose of
Job Analysis

16. Process of Job analysis

17. Types of Job analysis Information
Work Activities:
Machines, Tools, Equipments and Work
Aids used
Personal requirements
 Job context

18. Outcomes of Job Analysis
Job description
Job specification
Job evaluation

19. Job Description
A job description is a written statement of the
duties, responsibilities, required
qualifications and reporting relationships of a
particular job.
The job description is based on
Objective information obtained through job
analysis

20. Characteristics
1. Should indicate the scope & nature of the work including
all important relationships.
2. Should be clear regarding the work of the position, duties..
3. More specific words should be selected…
 The kind of work
 The degree of complexity
 The degree of skilled required
 The extent to which problems are standardized
 The extent of workers responsibility fro each phase of the
work
 The degree & the type of accountability
Action words such as
analyze, gather, plan, confirm, deliver, maintain, supervise &
recommend should be used.

21. 4. Supervisory responsibility should be shown tot the
incumbents
5. Utility of the description in meeting the basic
requirements should be checked from the extent of
understanding the job by reading the job description by
a new employee.
The content of job Description
the job Description normally contains the information
on the following lines…
 Job title
 Organizational location of the job
 Supervision given & received

22. Materials, tools, machinery & equipment worked
Designation of the immediate superiors &
subordinates
Salary levels: Pay, D.A., other
allowances, bonus, incentive wage, method of
payment, hours of work, shift, break.
Complete list of duties to be performed separated
according to daily, weekly, monthly &
casual, estimated time to be spent on each duty.

23. Example of Job Description
JOB TITLE:-------------------------
OCCUPATIONALCODE:---------------------------------
REPORTS TO:------------------------------------------------
JOB NO. :----------------------------------------------
SUPERVISES:------------------------------------------
GRADE LEVEL:-------------------------------------
AS ON DATE :--------------------------------------------
FUNCTIONS:__________________________________________________________
DUTIES AND
RESPONSIBILITIES:_______________________________________________________
JOB
CHARACTERISTICS:_________________________________________________________

24. Job description form of credit manager
Mr.Ravikanth… in SBI in INDIA
1. Job grade: Middle management
2. Job title: Credit manager
3. Reporting to: regional manager
4. Definition of job purpose: To be a link between the branch
managers & regional manager in appraising credit
proposals
5. Definition of job duties:
 Receiving credit proposals processes by field officers at all
branch level with specific remarks of the branch manager
 Evaluating the proposals from the lines of technical
feasibility, commercial viability, financial soundness
 Securing additional information required from the
applicant
 Visiting the industry/filed before taking final decision
 Making final decision & informing the same to all parties

25. 6. Additional responsibility requirements
Representing the bank in district development
committees
Maintaining sound employee relations in his
departments
7. Extent & limits of authority
Finalizing the projects requiring the loan up to Rs. 30
lakhs
Finalizing the projects owned purely by private
limited companies
8. Salary : Rs. 4500 per month (pay Rs. 3500 + HRA Rs.
700)
9. Working conditions

26. Job specification
Job specifications specify the
Minimum acceptable qualifications
required by the individual to perform
the task efficiently. Based on the
information obtained from the job
analysis procedures, job specification
identifies the qualifications, appropriate
skills, knowledge, and abilities and
experienced required to perform the job.
Job specification is an important tool in
the selection process as it keeps the
attention of the selector on the
necessary qualification required…..

27. Job specification form
 Job grade: Middle Management
 Job title: Credit manager
 Physical & Health: Normal health, able to visit factories,
fields----able to walk extensively
 Energy level & temperature: High, ability to adjust to
increasing temperature
 Appearance, Dress: Neat----suitable for travelling
 Mental abilities: Alertness, ability to read & perceive
accurately
 Special abilities: Flexibility, adaptability

28.  Special knowledge or skills: must know local language, skills of
conciliation & appreciation
 Skill in operating special equipment: Driving two wheelers & light
vehicles
 Degree of personal traits
 Maturity: Must be capable of accepting responsibility to recover
 Self reliance: Stick to own appraising decisions
 Dominance: Must dominate the filed officers & branch mangers
 Creativeness: Creative thinking in developing new schemes of
advances & recovery

29.  Particular skills: Calculating, analytical, interpretation,
appraising etc…
 Others: 1. age
2. sex
3. educational qualifications
4. experience
5. physical specification: Height, weight
6. social background
7. family background
8. extra-curricular activites
9. hobbies

30. Job Evaluation
Job evaluation provides the relative value of
each job in the organization. It is an important
tool to determine compensation
administration.
•
If an organization is to have an equitable
compensation program, jobs that have similar
demands on terms of skills, education and
other characteristics should be placed in the
common compensation groups

31.  Job Design
Job design is the process:
---of deciding the content of a job in terms of its
duties & responsibility
----on the methods to be used in carrying out the
job, in terms of techniques, systems & procedures &
on the relationships that should exist between the
job holder & his superiors & colleagues

32. Two important goals of job design are:
1. To meet the organizational requirements such as
higher productivity, operational efficiency, quality
of product/ service
2. To satisfy the needs of the individual employees
like interests, challenge, achievement or
accomplishment..
Finally the goal of job design is to integrate the
needs of the individual with organizational
requirements…

33. Job design process
---has to start from what activity needs to be done in
order to achieve organizational goals
---it requires the use of techniques like work-study,
process planning, organizational methods &
organizational analysis
---the retaining part of the discussion on the process
of job design involves the technical aspects of job
design

34. Job Rotation
---refers to the movement of an employee from one job to
another.
---job themselves are not actually changed, only the
employees are rotated among various jobs.
---an employee who works on a routine/respective job
moves to & works on another job for some
hours/days/months & backs up to the first job.
---this measures relives the employees from boredom &
monotony, improves employees skills regarding various
jobs & prepares the competent employees to meet the
contingencies.

35. Job loading
Increasing workload, often a result of redundancies. It may
mean having to do more of the same, but often entail one or
two extra activities that have to be taken on…
Job enlargement
---means adding more & different tasks to a specialized
job to provide grater variety. This process is called
horizontal job loading or horizontal enlargement. It
tackles dissatisfaction & reduces monotony by
increasing the variety & scope of tasks. This techniques
though leads to higher wages, it improves worker
satisfaction, quality of production & overall efficiency
of the organization

36. Job Enrichment
Means adding duties & responsibilities that will provide
for skill provide variety, task identity, task significance,
autonomy & feedback on jobs performance.
It tries to deal with dissatisfaction by increasing job
depth as work activities from a vertical slice of the
organizational unit are combined in one job.
As work becomes more challenging & worker
responsibility increases, motivation & enthusiasm also
increase

38. Advantages of Job Enrichment
Job enrichment is useful to both the workers and the
organization.
The worker gets achievement, recognition and self-
actualization.
The worker gets a sense of belonging to the organization.
 The worker finds the job meaningful.
 Job enrichment reduces absenteeism, labor-turnover and
grievances.
 It motivates the workers to give best performance.

39.  Techniques of Job enrichment
 Increasing the responsibility of the activity
 Providing wider scope, more sequence & increased pace of
the work
 Giving a natural unit of work either to an employee or group
of employees
 Providing the freedom of work by minimizing controls when
the employee are clearly accountable for attaining defined
goals.
 Allowing the employees to set their own standards or targets
 Encouraging employee participation in planning,
innovation & creations

40. Evaluation types
 Job Ranking is the most simple form. Basically one just
orders the jobs according to perceived seniority. This is easy
to do in a small organization, but gets more and more
difficult as different jobs exist within the company.
 Pair Comparison introduces more rigor by comparing jobs in
pairs, but really it's a more structured way of building a basic
rank order.
 Benchmarking or slotting sets up certain jobs that are
analyzed in detail. These are then used for comparison to
slot jobs against these benchmarks.
 Job Matching allocates benchmarks too, but when a position
is matched the elements of the job that differ are re-
evaluated. Usually this evaluation will be done with a Point
Factor Analysis (PFA) or classification system.

41.  Point Factor Analysis
 Point Factor Analysis (PFA) is the old-school (but fair)
bureaucratic method for determining a score for each job.
Jobs are broken down into factors such as “knowledge
required”. A set of closed questions in each factor break down
to detail such as “level of education”. The responses to these
questions are given a score, and totaled for each factor. Each
factor is given a weight, and this effects the contribution
made to the overall total score by that factor.
 Factors can be weighted according to their significance to the
organization, and this allows the pay scheme to be linked to
the organization’s strategy.

42.  Job Simplification
 Job simplification is a design method whereby
jobs are divided into smaller components and
subsequently assigned to workers as whole jobs.
 Simplification of work requires that jobs be
broken down into their smallest units and then
analyzed. Each resulting sub-unit typically
consists of relatively few operations. These
subunits are then assigned to the workers as their
total job.

43.  There appears to be two major advantages in using job
simplification. First, since the job requires very little training,
they can be completed by less costly unskilled labor. Second,
job speed increases because each worker is performing only a
small portion of the previously large job and thus is able to
master a smaller, less complicated job unit.
 On the negative side, job simplification results in workers
experiencing boredom, frustration, alienation, lack of
motivation and low job satisfaction. This, in turn, leads to
lower productivity and increased cost.