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Human resource planning is the process by which an organization ensures that it has the right number and kinds

of people, in the right places, and at the right times, who are capable of effectively and efficiently performing assigned tasks. It is the process by which management determines how the organization should move from its current(human resource)position to its desired (human resource) position.

Human

resource planning is also known as man power planning or employment planning or workforce planning

Growing shortages of HR to fill certain jobs


such as Blue collar jobs, entry level white

collar jobs- E.g.( tool and die makers, craft


workers).

Growing number of retirement options


available to workers

Rapid change in knowledge are making it difficult for professionals ,engineers and managers to remain at their jobs Resistance of employees to change and to relocate

Growing prominence of elf evaluation loyalty and dedication to the organization

Improve the utilization of Human resource planning Match HR related activities and organisation objectives Achieve economies in hiring new workers Provide a better platform for employee development that makes optimum use of workers aptitude

Expand HR activities and other organizational units. Coordinate different HR management programs, such as affirmative action plans and hiring needs. Make more demands on local labour markets successfully. Promote greater awareness of importance of sound HR management throughout all levels of the organisation

Collection

of information Forecast demand for HR Forecast supply of HR Identify HR gap Action Plans

1.COLLEXCTION INFORMATION A. From The External Environment 1. Economy- general and specify industry 2. Technology 3. Competition 4. Labour markets 5. Government regulations B. From inside the Organisation 1. Long range plans 2. Business plans 3. Current Human Resources 4. Government Regulations

II Forecast HR Requirements(Demand) A. Short and Long Term B. Aggregate or Individual Positions

IIl Forecast HR Availability (Demand) A. Internal Supply B. External Supply

IV MATCH Matching Demand and Supply

NO
ACTION PLANS VARIANCES END

YES

IF SURPLUS

IF SHORTAGE

PROGRAMS TO DECREASE SUPPLY OR INCREASE DEMAND

PROGRAMS TO INCREASE SUPPLY OR REDUCE DEMAND

VII ACTI ON DECI SIONS

END

END

It is the process by which an organisation estimates its future HR needs. Human forecasting resource = HR + forecasting demands

HR supplies

An organisation future demand for people is central to HR planning . A variety of forecasting methods can determine an organizations demand for HRs. The type of forecast used depends on the time frame and the type of organisation , its size and dispersion, and the accuracy and certainty of available information

External challenges 1. Economic challenges 2. Socio -political legal Challenges 3. Technological changes 4. Competitors

Organizational decisions 1. Strategic plans 2. Budgets 3. Sales and production forecasts 4. New ventures 5. Organisation and job designs 1. 2. 3. 4. 5.

Workforce factors Retirements Resignations Terminations Deaths Leaves of absence

Forecasting techniques for HR demands

Judgmental forecasts 1. Bottom up (or unit) forecasting 2. Top down forecasting 3. Delphi technique 4. Nominal group technique (NGT) 1. 2. 3. 4. 5.

Statistical Techniques Regression analysis Productivity ratio Personal ratios Time series analysis Stochastic analysis

Simple method Each unit, department estimates their own future need of HR Sum of these needs is the demand Approval from management and then to HR planning group.

Estimates id done by managers Discussion how the trend, business plans, economy and other factors will affect the need for HR. Check the better and worst records and the decision is made Estimation is done based on the quality of information given to judgmental experts

Structured method formed by group consensus Experts dont meet First step is preparing anonymous questionnaire Ask opinion and the reason for it Results complied along with second anonymous questionnaire Process continuous to have a proper judgment.

Improve quality of decision making Minimize personality conflicts Prevent domination of loudest group

Not appropriate for quick decisions Practical difficulties in integrating the experts opinion

Several people (managers, experts) sit in conference table and write their suggestion in sheets independently All ideas are discussed and ranked by group votes 3 to 5 important ones. NGT more frequently used to identify organizational problems and solutions to those problems

1. Regression

analysis 2. Productivity ratio 3. Personal ratios 4. Time series analysis 5. Stochastic analysis Refer notes for details

As with forecasting demand , two basic techniques help forecast internal labour supply. 1. judgmental forecasts a) Replacement Analysis b) Succession analysis 2.statistical techniques a) Markov and b) Goal Programming

Uses replacement chartsvisual representation of who will replace whom in the event of a job opening.
This chart helps in quick identification

Incumbents are listed directly under the job title , which helps to estimate what jobs are likely to become vacant.

Similar to replacement Long term and tends to greater flexibility

Simple method of predicting the internal supply of labour for future Heart of Markov analysis is the transition probability matrix which shows the probability of employees retaining in job, moving or leaving for that period. This gives the idea how many will stay back at the end of the year. Identify lower retention probability but not a problem solver

Markov analysis extension Objective- Optimize goals.

Lack of top management support Lack of involvement from line managers Improper information system Uncertain organisation factors Time consuming and expensive

Recruitment may be defined as the process of discovering potential candidate for actual and anticipated organizational vacancies.

Determine organization's long and short range needs by job title Staying informed of job market difficulties Develop effective recruiting materials Develop a systematic recruitment program Obtaining a pool of qualified job applicants

Record the number and quality of applicants Following up on applicants in order to evaluate the effectiveness of recruiting effort Accomplishing all of these activities within a legal context

Determine the exact need

Obtain approval

Combine or update job description and satisfaction

Determine the key performance areas of the job Consult the recruitment policy and procedure

Choose the recruitment methods

Implement the decision

Allow sufficient time for response

Screen responses

Draw up a short list of candidates

Provide feedback to applicants

Proceed to selection

Evaluate recruitment effort

Methods of Recruitment

Internal Methods Job posting and bidding


Skill Inventories Inside Moon Lighting

External Methods Advertisements


Special events Recruiting Other innovative methods

Job posting and bidding Job posting describe the jobs, locations, pay rates and qualifications and encourage all interested employees to apply Skill Inventories It is a manual or computerized system designed to keep track of employees experience , education and special abilities. Based on the skills candidates are selected and contacted. It is time consuming and expensive

Inside moon lighting In case of small job or short term need , which do not involve more work the organisation would offer to pay bonuses of various types to people not to on a time payroll.

Advertisements Advertising through TV, radio, magazine, trade journals and internet etc Can capture wider audience Two types a. Want Ads b. Blind Ads

External Methods
Want Ads It describes the job and benefits & identify the employees Thousands of job seekers may apply for one job Bind ads It is also known as blind box ad- the companies names will not be there only box number availability will be there

Special events Recruiting When the supply of employees available is small some organisation use special events to attract potential employees They may advertise at professional meetings, provide literature, headquarters visit and also job fairs , native daughter and son days

Innovative method Telerecruiting Direct Mail Point of Sale recruiting messages Posters Door Hangers Bill boards Hot Lines Information Seminars Welcome wagon, relocation consultants

Recruitment Sources

Internal Sources Promotion Transfer Job rotation Rehires and recalls

External sources Employment agencies Walk ins Employees referrals Professional associations Head hunting Educational institutions Temporary help agencies Trade associations and unions Casual or unsolicited applicants

Advantages
Morale of promotee Better assessment of abilities Lower cost for some jobs Motivator for good performance Causes a succession of promotions Have to hire only at entry level

Disadvantages
INTERNAL SOURCES

Inbreeding Possible morale problems of those not promoted Political infighting for promotions Need strong management development program

EXTERNAL SOURCES New blood ,new perspectives Cheaper than training a professional No group of political supporters in organisation already May bring industry insights May not select someone who will fit May cause morale problems for those internal candidates Longer adjustments or orientation time

Socialization, or on boarding is a process of adaptation to a new work role


adjustments must be made whenever individuals change jobs the most profound adjustment occurs when an individual first enters an organization, i.e., outside to inside

socialization strongly influences employee performance and organizational stability

new members suffer anxiety

Socialization does not occur in a vacuum

Individuals adjust to new situations in similar ways

Prearrival Individuals arrive with a set of values, attitudes, and expectations developed from previous experience and the selection process. Encounter Individuals discover how well their expectations match realities within the organization. Where differences exist, socialization occurs to imbue the employee with the organizations standards. Metamorphosis Individuals have adapted to the organization, feel accepted, and know what is expected of them.

It is defined as the process by which organization chooses from the applicants , those people whom they feel would best meet the job requirement , considering current environmental conditions.

To evaluate, hire and place job applicants based on their both satisfaction to contribute for production in organization more effectively and efficiently To enable the organization to fulfill their goals To ensure the organizations investments in employees pays off. To fulfill the hiring goals at specified time

JOB ANALYSIS
ORIENTATION TRAINING DEVELOPMENT CAREER PLANNING PERFORMANCE EVALUVATION COMPENSATION COLLECTIVE ACTION HR CONTROL

HR PLANS

SELECTION PROCESS

RECRUITS

INPUTS

PROCESS

OUTPUT

Step 0 Reception of Applicants Step 1 Initial Screening Step 2 Application blank Step 3 Employment Tests Step 4 Employment Interviews Step 5 Reference checks Step 6 Physical Examinations Step 7 Job Offer Decision

Refer class notes for process diagram

This step forms the base for selection process It is two way street Organisation selects employees and applicants select employers Basic objective is to attract as much as applicants as possible to get best candidates

Selection process starts with preliminary screening Preselection and elimination is done in this stage Two steps 1. Screening Inquiries 2.Screening Interviews

Based on job description and job specification elimination is done Negative decision at this point include inadequate and inappropriate experience and education. Other reasons for elimination includes applicants job history, many brief jobs, numerous courses and seminar instead of appropriate education

Before filling the application a brief interview is taken that is called as initial screening interview or courtesy interview . In this interview straight forward questions are asked such as education, experience, salary etc. The HR describes about the job clearly and so those who really serious in applying may go forward others may withdraw.

Telephonic interviews, conference call interviews or videoconferencing can reduce the cost during screening interviews This helps to avoid misfits and add potential recruits

Applicants after screening will be given application form Application form will be filled in by the applicants providing information such as personal data, employment status, education and skills, work history, awards, membership and hobbies, references, signature line.

It is a special type of application blank in which each item of information is weighted and scored based on its importance as a determinant of job sucess

Bio-data or Resume is the common method where the applicants use to provide background information Bio-data is also known as Curriculum Vitae/ Vitae

It is mechanism or an instrument that attempts to measure certain characteristics of individuals This test is used for differential placement to the most suitable job after a person has hired.

Employment Tests

Psychological tests 1. Intelligence tests

Performance Simulation Tests 1. Working Sample 2. Assessment Centers

2. Aptitude Tests
3. Personality Tests 4. Interest Tests

5. Situational Tests

Refer class notes for process diagram

An interview is a conversation or verbal interaction , normally between two people, for a particular purpose. An interview offers the organization an opportunity to answer the candidates question regarding the job, career opportunities and company policies

1. Unstructured or Non directive or Free 2. Structured or patterned 3. Mixed or Semi Structured 4.Problem-Solving 5.Stress- Producing

Refer class notes for process diagram

Reference and background checks are those enquiries made of prior employers, co-workers , professional associates, family, friends teachers, schools etc These checks are done to get information regarding work performance , skills, competencies, professional status, education, behavior and attitude

Physical ability tests are designed to measure physical strength , agility ,hand to eye coordination , as well as general or physical ability. They serve as the basis for enrolling the new employee in health related benefits , including (accident, disability and life) insurance

Types 1. Strength and fitness testing

Purpose Measure applicant strength and fitness to accomplish the job

2. Drug tests

Measure the presence of illegal or performance affecting drugs( athletes , government, employees and equipment operators
Identifies individual who are hypersensitive to harmful pollutants in the work place Measures and monitors exposure to hazardous chemicals( miners, factory, workers & researchers) Measures honesty and truthfulness( police, retail store workers) Measures attitudes about theft and related subjects(retail workers, banks and securities )

3.Genetic Screening 4.Medical Screening

5. Lie detector test 6. Honesty test

After the selection has been collected and reviewed a final hiring decision is made 1.Clinical judgment 2. weighted Compromise method 3. Multiple cut-off method

This method is an informal evaluation of the applicants and a subjective selection of one of the best person for the job

This requires assignment of weights for the various criteria used in the selection process and the calculation of an aggregate score for each candidate

It is sequential process in which each applicant is required to meet specific standards at each step in the evaluation

The information given by the applicants should be reliable and valid Predictor is a selection device that assists organisation in making selection decisions. Success of predictor is judged by Reliability and Validity

It is defined as the consistency of measure The reliability of selection device is the degree to which it produces dependable or consistent results

Test retest reliability Subjects are asked to take same test twice at different times. The results are correlated between the two sets of scores and the reliability is checked Interrator reliability Consistency of rating by different individuals

T he term validity may be defined as the agreement between a test score or measure and the quality it is believed to measure Types of Validity

1.Criteria

Related (a. Predictive

b.Concurrent)

2. Content Validity 3. Construct Validity

1.Criteria Related Validity

a. Predictive It is used in personnel selection Relation between predictor and criterion Data on job performance and original test is collected and then compared with actual job performance for personnel selection b.Concurrent/present employee method The test is conducted between the current employees as opposed to job applicants Data is collected as test scores . The relation between the predictor and criterion will give the validity of predictor

The degree to which the tasks involved in the test are representative of the total set of tasks or job goals

Degree to which a specific test measures the construct that is designed to measure. To what extend the construct corresponds to the job requirements.

1. Selection Ratio
Name of applicants selected

Selection Ratio =
Name of applicants considered for selection

2.

Base Rate
Name of applicants with necessary qualification =

Base Rate

Name of applicants available

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