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Module II
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Acquisition of Human Resources 20%
Objectives,
Policies and Process of Human Resource
Planning,
Job Analysis,
Recruitment (process, methods: internal,
external),

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Selection (process, tests, interviews),

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Induction,

Introduction
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Organizations need to do human resource
planning(HRP) so they can meet business
objectives and gain a competitive advantage
over competitors
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W
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An integral part of corporate planning and budgeting
procedures

Human Resource Planning Process
External Environment
Internal Environment
Strategic Planning

Human Resource Planning
Forecasting
Human
Resource
Requirements

Comparing
Requirements
and Availability

Forecasting
Human Resource
Availability

Demand =
Supply

Surplus of
Workers

Shortage of
Workers

No Action

Restricted Hiring,
Reduced Hours,
Early Retirement,
Layoff, Downsizing

Recruitment
Selection
4

Features of HRP
1
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human resource planning has its own objectives
like developing human resources, updating
technical expertise, career planning of individual
executives and people, ensuring better
commitment of people and so on
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Determining Human Resource Needs:

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Human resource plan must incorporate the

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3
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The executive should know
the persons who will be available to him for
undertaking higher responsibilities in the near
future
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Adjusting Demand and Supply:
Manpower needs have to be planned well in
advance as suitable persons are available in
future
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Requirements: Determining the number /types of
employees needed by skill level and location
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Availability : the internal /external source present

Overview of the Human Resource Planning
Process

Example of the Basic Human Resource Planning Model

Open new
product line
Open new
factory and
distribution
system

1

Develop staffing
for new installation
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Production
workers

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Supervisors

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Technical staff

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Other managers

2

Recruit skilled
workers

3

Develop technical
training programs
Transfer managers
from other
facilities

4
Develop new
objectives
and plans

5

Recruit managers
from outside

3

Recruiting and
training
programs
feasible
Transfers
infeasible
because of lack
of managers
with right skills

Too costly to hire
from outside

THE PROCESS OF HRP
1
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FORECAST DEMAND FOR HUMAN RESOURCES
-SHORT AND LONG TERM
-AGGREGATE OR INDIVIDUAL POSITIONS

3
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Manage the Gap
-Increase or reduce workforce size
-change skill mix
-develop managerial succession plans
-develop career plans

5
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ANALYSIS OF THE WORKFORCE
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INVENTORIES OF THE EXISTING WORKFORCE
SUCCESSION PLANS-to determine the type and calibre of
managers available to succeed senior or middle managers
who retire or leave
MOVEMENT OF EMPLOYEES-promotions and transfers
USE OF STAFF-overtime working, Absenteeism, ineffective
or wasted time or efficiency in the use of labour
LABOUR TURNOVER-an analysis of the rates at which staff
are leaving employment & of trends of such turnover
COSTS-to know at which point recruitment becomes most
cost-effective than increased overtime working
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Forecasting HR requirement
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Depends on the scale of operations of the
organization over a period of time
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FORECAST SUPPLY OF HR
1
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Organizational features (e
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, staffing capabilities)

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Rates of promotion, demotion, transfer and turnover

2
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Controllable company factors on external factors
(entry-level openings, recruiting, compensation)
-Changing patterns of work (e
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Zero based Forecasting: uses the org current level
of employment as a starting point for
determining future staff needs
Need to give justification for filling position if
people exit, retire or get fired
2
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Markov analysis: Show the percentage of
employee who remain in job from one year to
next and proportion of those who were
promoted, demoted or transferred
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It answers two questions:
1
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“Where did people now in each job category

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5
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g
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HRIS: (human resource information system)
Skill inventories provide information about non managers
and used for making transfer and promotion decisions
The seven categories of information included in skill
inventories are

1) Personal data: Age, gender, marital status
2) Skills: Education level, job experience, training
3) Special Qualification: Professional bodies membership, achievements
4) Salary and Job history: various job held, past and present pay
5) Company date: retirement date and seniority
6) Capacity of individual: health status, scores on psychological, physical
test, and IQ test
7) Special preference of individual: geographic location, type of job

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Past experience has developed these yield
ratios for recruiting a Cost Accountant:

FOR EVERY 12 APPLICATIONS RECEIVED, ONLY 1 LOOKS PROMISING ENOUGH TO
INVITE FOR AN INTERVIEW

OF EVERY 5 PERSONS INTERVIEWED, ONLY 1 IS ACTUALLY OFFERED A POSITION
IN THE ORGANIZATION

OF EVERY 3 JOB OFFERS MADE, ONLY 2 ACCEPT THE POSITION

OF EVERY 10 NEW WORKERS WHO BEGIN THE TRAINING PROGRAM, ONLY 9
SUCCESSFULLY COMPLETE THE PROGRAM

THUS:

100 APPLICATIONS MUST BE RECEIVED, so that

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9
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It uses information from
the past relationship between Organisation
employment level & some criteria known to be related
to employment
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Time series: Organisations take past Quantitative
data on Demand and discern demand patterns to forecast
future
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q

q

q

11
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Best for short-run forecasts and small and medium
sized organizations
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Determining Labor Surplus or Shortage
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Based on the forecasts for labor demand and
supply, the planner can compare the figures to
determine whether there will be a shortage or
surplus of labor for each job category
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IMPLEMENTATION OF THE PLAN

1
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3
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5
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ACQUISITION STRATEGIES: Which define how the
resources required to meet forecast needs will be
obtained
RETANTION STRATEGIES: Which indicate how the
organisation intends to keep the people it wants
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FLEXIBILITY STRATEGIES: How the organisation can
develop more flexible work arrangements
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Alternative Scheduling Options
Alternative

Percent Using
(N = 427 companies)

The following definitions were used in this survey
for alternative scheduling strategies:
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Part-time: A regular employee who works fewer than 35 hours per
week
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40%

Compressed workweek: A full-week schedule (usually 40 hours) than
occurs in fewer than five days, such as four 10-hour days
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18%

Work-at-home: A program that enables employees to complete work
at home (or at a remote office closer to home) on a regular basis
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”

13%

Shortcomings of HRP in Practice
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HRP in practice is usually less rational and
may omit one or more of the steps
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May lack knowledge required for forecasting

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Incorrect assumptions about effectiveness of HR
programs

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Does not engage in strategic planning

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Resistance to change present HR systems

HRP should be:
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Done to guide and coordinate all HR activities so
they work together to support the overall strategy

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Responsive to internal and external environment

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Planning - done in advance

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Strategic - linked with higher level planning

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Needs to be flexible

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Needs to be process driven

JOB ANALYSIS
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Company president, manager, director of
personnel, legal counsel, labor relations
specialist, college president, dean, and
professor are all jobs
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Job
analysis is the process of obtaining
information about jobs through a systematic
examination of job content
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JOB ANALYSIS TECHNIQUES
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Job analysis techniques
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The technique most appropriate for a
given situation depends on a number of
factors, such as the type of job being analyzed,
the resources available for doing a job
analysis, the scope of the job, and the size of
the organization
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METHOD OF JOB ANALYSIS:
1
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(work sampling, employees
diary)
The interview method of gathering
information requires that a manager or HR
specialist visit each job site and talk with the
employees performing each job
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Planning the Job Analysis: It is crucial that
the job analysis process be planned before
beginning the gathering of data from
managers and employees
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Maybe it is just
to update job descriptions
2
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For example, are the jobs
to be analyzed hourly jobs, clerical jobs, all

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3
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The methods selected will
determine the time line for the project
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Recruitment is a positive process of searching
for prospective employees and stimulating
them to apply for the jobs in the organisation
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The job-seekers too, on the other hand, are in

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According to Edwin B
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Kempner writes, “Recruitment forms the first
stage in the process which continues with
selection and ceases with the placement of
the candidates
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Recruitment Planning: The first step involved in the recruitment
process is planning
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Strategy Development: Once it is known how many with what
qualifications of candidates are required, the next step involved in this regard
is to devise a suitable strategy for recruiting the candidates in the
organisation
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There are broadly
two sources used to attract candidates
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Internal Sources, and
2
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3 Sources of Recruitment
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Screening: Job specification is invaluable in
screening
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Evaluation and Control: Given the
considerable cost involved in the recruitment
process, its evaluation and control is,
therefore, imperative
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1) Internal Recruitment
2) External Recruitment
Companies have 2 option recruiting
candidates’ i
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internal sources and external
sources
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Employees currently working in
their own company are departed to other
department or higher position
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External employees
always feel young and innovative for new
companies, more active enough to find
business problems and fix it
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Sources of Internal Recruitment:
1) Selecting top talents within an organization
to higher level
2) Promotions

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Sources of External Recruitment:
1) Job portals
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3) Newspaper Ads and Magazines
4) Website
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6) Direct Walk In
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8) Recruitment agencies
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Advantage of Internal Recruitment

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Advantage of External Recruitment
1) Create new opportunities for job seekers
and experience employees
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3) More applicants from external employees
resulting pool of rich source of candidates of
unique employees
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5) No partiality among unique employees
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7) No need of training as experienced external

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Disadvantage of Internal Recruitment
1) Discrimination may exist in respective to
caste, language, religion for promotion
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4) External candidates seeking employment
think about discrimination
5) Lack of innovative 
Disadvantage of External Recruitment
1) More time consuming
2) High cost

SELECTION
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Selection means a process by which the
qualified personnel can be chosen from the
applicants who have offered their services to
the organisation for employment
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Thus the selection process is a
negative function because it attempts to
eliminate applicants, leaving only the best to
be placed in the organisation
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A formal
definition of Selection is as under
Definition of Selection: Process of
differentiating
“Selection is the process of differentiating
between applicants in order to identify and
hire those with a greater likelihood of success
in a job
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    Preliminary Interview: The purpose of
preliminary interviews is basically to eliminate
unqualified applications based on information
supplied in application forms
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On the other
hands preliminary interviews is often called a
courtesy interview and is a good public
relations exercise
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    Selection Tests: Jobseekers who past the
preliminary interviews are called for tests
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    Employment Interview: The next step in
selection is employment interview
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It is considered to be an
excellent selection device
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Besides there can be Structured
and Unstructured interviews, Behavioral
Interviews, Stress Interviews
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    Reference & Background
Checks: Reference checks and background
checks are conducted to verify the information

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The final
decision has to be made out of applicants who
have passed preliminary interviews, tests, final
interviews and reference checks
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A job offer is

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It is
made by way of letter of appointment
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  Final Selection

INDUCTION
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The Induction duly helps employees to
undergo each and every phase of environment
of Company and an introduction to his team
and others
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It is such a phase
which gives a glimpse of entire Organization in
that short span
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It
involves assigning a specific rank and
responsibility to an individual
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significance of placement
* It improves employee morale
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Generally, these written tests are measuring
some or all of the following:
General mental ability (verbal, numerical and
spatial)
Personality factors (introverted or extroverted,
objective or intuitive, logical or emotional,
decisive or hesitant etc)
Aptitude (how quickly you are likely to learn
and master particular kinds of tasks)
Achievement (tests how much you know
about a particular topic)



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