2. Forecasting human resource demand and supply
Forecasting human resource demand is the process of estimating the future human
resource requirement of right quality and right number. As potential human resource
requirement is to be estimated keeping in view the organization's plans over a given
period of time. Analysis of employment trends; replacement needs of employees due to
death, resignations, retirement termination; productivity of employees; growth and
expansion of organization; absenteeism and labor turnover are the relevant factors for
human resourced forecasting. Demand forecasting is affected by a number of external
and internal factors.
3. FACTORS AFFECTING HR DEMAND FORECASTING
Human Resource Demand Forecasting depends on several factors, some of which are
given below.
Employment trends
Replacement needs
Productivity
Absenteeism
Expansion and growth
4. There are number of techniques of estimating/forecasting
human resources demand:
Ratio-trend Analysis : Comparing the number of employees to a workload index.
It does not take into account the technological development, local conditions or other
variables that may be detrimental to productivity
Nominal Group Technique : The experts sit together to make forecasts. Forecasts
are transferred to a large sheet and displayed to all the experts. This helps in attaining
good results
Delphi Technique : To predict the future developments in a particular area, by
integrating the judgments and opinions provided independently by many experts.
Experts both within or outside the organization presenting their forecasts to other
experts without physically meeting them. Good for short duration forecasts
Bottom Up Technique : Starts from lowest level and progresses upwards.
Department managers periodically projects their workforce requirement keeping in
mind productivity levels, market demands, sales forecast and mobility of the staff in the
department.
5. Process flowchart – depicting forecast on manpower planning
Corporate objectives
Demand for Manpower
Market Demand
Assess Manpower Supply
Existing
Labour Market
Potential
Manpower Estimate
Recruitment
Plans
Training Plans
Promotion
Pay productivity
Retirement
Success Plan
Plans
Redundant plans
Periodic reviews
6. TYPES OF TESTS
Aptitude test:
Aptitude tests measure whether an individuals has the capacity or latent ability to learn
a given job if given adequate training.
Achievement tests :
Assist in determining how well an individual can perform tasks related to the job. An
excellent illustration of this is the typing tests given to a prospective employer for
secretarial job
Interest Test:
This is conducted to find out likes and dislikes of candidates towards occupations,
hobbies, etc. such tests indicate which occupations are more in line with a person’s
interest
Personality Test:
The importance of personality to job success is undeniable. Often an individual who
possesses the intelligence, aptitude and experience for certain has failed because of
inability to get along with and motivate other people
Perception Test:
At times perception tests can be conducted to find out beliefs, attitudes, and mental
sharpness. etc.
7. Types of interviews
Formal interview
In this type of interview, all the formalities, procedures like fixing the time, value, Panel
members, opening, closing are strictly followed in arranging and conducting the
interview
Informal interview
This is the interview which can be conducted at any place by any person to secure the
basic and non-job related information. The Interaction between candidate and
interviewer.
Non directive interview
It is the interview which can be held by using of electronic media. Ex : Telephonic,
video conferencing etc.
Stress interview
This interview aims at the candidate’s job behavior and level of withstanding during
the period of stress and strain.
8. Panel Interview
A panel interview is conducted by two or more interviewers and is designed to reduce
individual interviewer bias. It is very common for entrance into graduate and
professional schools. One member of the panel may ask all of the questions or
individual panel member may take turns.
Group Interview
A group interview occurs when several candidates for a position are interviewed
simultaneously. Group interviews offer employers a sense of your leadership potential
and style, and provide a glimpse of what you may actually be like as an employee and
how you would fit into the team.
Depth interview
In this type of interview, the candidates would be examined extensively in core areas of
knowledge and skills of the job.
9. RECRUITMENT
Recruitment is defined as, "the process of
finding and attracting capable applicants
for employment. The process begins when
new recruits are sought and ends when
their applications are submitted. The result
is a pool of applicants from which new
employees are selected."
10. Purposes and Importance :
(1) To provide a pool of potentially qualified job
candidates.
(2) Increase the pool of job candidates at
minimum cost.
(3) Help increase the success rate of the
selection process by reducing the number of
visibly under-qualified or overqualified job
applicants.
(4) Help reduce labour turnover in the future.
(5) Determine the present and future
requirements of the organisation in conjunction
with its personnel planning and job-analysis
activities.
(6) Begin identifying and preparing potential job
applicants who will be appropriate candidates.
(7) Increase organisational and individual
effectiveness in the short term and long term.
(8) Evaluate the effectiveness of various
recruiting techniques and sources for all types of
job applicants.
11. advantages
It promotes greater loyalty and morale among the employees.
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.
When carefully planned, promoting from within can also act as a
training device for developing middle-level and top-level managers.
Those chosen internally are familiar with the organisation.
It encourages self-development among employees. They look
forward to higher posts.
It also creates a sense of security, stability and continuity of
employment.
It eliminates the chances of hasty decisions.
It is a cheaper source of recruitment as compared to external
sources.
12. demerits
Internal sources of recruitment have certain demerits
also. These are listed below :
(1) When vacancies are filled through internal
promotions the scope for fresh blood entering the
organisation is reduced.
(2) The advantage of hiring outsiders who may be
better qualified and skilled is denied.
(3) The employees may become lethargic if they are
sure of time-bound promotions.
(4) The spirit of competition among the employees
may be hampered.
(5) Promotion also results in inbreeding which is not
good for the organisation.
(6) There are possibilities that the internal sources may
"dry up". It may be difficult to find the requisite
personnel from within an organisation.
14. placement
Placement is a process of assigning a specific job to each of the selected candidates. It
involves assigning a specific rank and responsibility to an individual. It implies
matching the requirements of a job with the qualifications of the candidate.
Significances of placement
* It improves employee morale.
* It helps in reducing employee turnover.
* It helps in reducing absenteeism.
* It helps in reducing accident rates.
* It avoids misfit between the candidate and the job.
* It helps the candidate to work as per the predetermined objectives of the organization.
15. Induction
Once an employee is selected and placed on an appropriate job, the process of
familiarizing him with the job and the organization is known as induction.
Induction is the process of receiving and welcoming an employee when he first joins
the company and giving him basic information he needs to settle down quickly and
happily and stars work.
the objectives of induction
* To help the new comer to overcome his shyness and overcome his shyness
nervousness in meeting new people in a new environment.
* To give new comer necessary information such as location of a café, rest period etc.
* To build new employee confidence in the organization.
* It helps in reducing labor turnover and absenteeism.
* It reduces confusion and develops healthy relations in the organization.
* To ensure that the new comer do not form false impression and negative attitude
towards the organization.
* To develop among the new comer a sense of belonging and loyalty to the organization
16. the advantages of formal induction
* Induction helps to build up a two-way channel of communication between
management and workers.
* Proper induction facilitates informal relation and team work among employee.
* Effective induction helps to integrate the new employee into the organization and to
develop a sense of belonging.
* Induction helps to develop good relation.
* A formal induction program proves that the company is taking interest in getting him
off to good start.
* Proper induction reduces employee grievances, absenteeism and labor turnover.
* Induction is helpful in supplying information concerning the organization, the job and
employee welfare facilities.