HUMAN RESOURCES PLANNING

Meaning: Human resource planning means deciding the number and try of the human resources required for each job, unit and the total company for a particular future date in order to carryout organizational activities. Definition: E.W. Vetter viewed human resources planning 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 and right kind of people at the right place at the right time, doing things which result in both the organization and the individual receiving maximum long-run benefits. OBJECTIVES OF HUMAN RESOURCES PLANNING: 1. To recruit and retain the human resources of required quantity and quality. 2. To foresee the employee turnover and make the arrangements for minimizing turnover and filling up of consequent vacancies. 3. To meet the needs of the programs of expansion, diversification etc. 4. To foresee the impact of technology on work, existing employees and future human resource requirements. 5. To improve the standards, skills, knowledge, ability, discipline etc. 6. To assess the surplus or shortage of human resources and take measures accordingly. 7. To maintain congenial industrial relations by maintaining optimum level and structure of human resources. 8. To minimize imbalances caused due to non-availability of human resources of the right kind, right number in right time and right place. 9. To make the best use of its human resources and, 10. To estimate the cost of human resources. NEED & IMPORTANCE OF HUMAN RESOURCE PLANNING: 1) By providing required number & quality of HRs, it helps the organization to achieve its objectives 2) It helps to fill future positions by estimating the talent in present manpower 3) It facilitate for organizational expansion & diversification 4) It ensures effective utilization of all resources 5) It increases the competitive strength of the organization in the changing technology 6) It helps in preparation of budgets & thereby leads to controlling of costs 7) It creates awareness on effective utilization of HR 8) It also contributes to management succession & development. BENEFITS OF HUMAN RESOURCES PLANNING: Human Resources Planning (HRP) anticipated not only the required kind and number of employees but also determines the action plan for all the functions of personnel management. It checks the corporate plan of the organization.

 It offsets uncertainty and change. But the HRP offsets uncertainties and changes to the maximum extent possible and enables the organization to have right men at the right time and in the right place. It provides scope for advancement and development of employees through training, development etc. It helps to anticipate the cost of salary enhancement, better benefits etc. It helps to anticipate the cost of salary, benefits and all the cost of human resources, facilitating the formulation of budgets in an organization. To foresee the need for redundancy and plan to check it or to provide alternative employment in consultation with trade unions, other organizations and the government through remodeling organizational, industrial and economic plans. To foresee the changes in values, aptitude and attitude of human resources and to change the techniques of interpersonal management etc. To plan for physical facilities, working conditions and the volume of fringe benefits like canteen, schools, hospitals, conveyance, child care centers, quarters, company stores etc. It gives an idea of the type of tests to be used and interview techniques in selection based on the levels of skills, qualifications, intelligence, values etc. of future human resources. It helps to take steps to improve human resources contributions in the form of increased productivity, sales, turnover etc. It facilitates the control of all the functions, operations, contribution and cost of human resources. RECRUITMENT: The management has to find the places where required human resources are/will be available and also work out strategies for attracting them towards the organization before selecting suitable candidates for jobs. This process is generally known as recruitment. Technically speaking the function of recruitment precedes the selection function and it includes only finding, developing the sources of prospective employees and attracting them to apply for jobs in an organization, whereas the selection is the process of finding out the most suitable candidate to the job out of the candidates attracted. MEANING: Recruitment is defined as a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attacking that manpower in adequate numbers to facilitate effective selection of an efficient workforce. DEFINITION: Edwin B. Flippo defined recruitment as the process of searching for prospective employee and stimulating them to apply for jobs in the organization. METHODS: After understanding the strategies and recruitment policy, the HR manager has to search for the candidates who can contribute for the achievement of the companys strategies. Various

sources are: a) Traditional sources of recruitment and b) Modern sources of recruitment. TRADITIONAL METHODS OF RECRUITMENT: The methods of recruitment are divided into internal methods and external methods. Internal methods: PRESENT PERMANENT EMPLOYEES: Organizations consider the candidates from this source for higher level jobs due to availability of most suitable candidates for jobs relatively or equally to the external source, to meet the trade union demands and due to the policy of the organization to motivate the present employees. PRESENT TEMPORARY or CASUAL EMPLOYEES : Organizations find this source to fill the vacancies relatively at the lower level owing to the availability of suitable candidates or trade union pressures or in order to motivate them on the present job. RETRENCHED or RETIRED EMPLOYEES: A particular organization retrenches the employees due to lack of work. The organization takes the candidates for employment 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 interpersonal conflicts for promotion etc. DEPENDENTS OF DECEASED, DISABLED, RETIRED and PRESENT EMPLOYEES : Some organizations function with a view to developing the commitment and locality of not only the employee but also his family members and to build up image and provide employment to the dependent(s) of deceased, disabled and present employees. Such organizations find this source as an effective source of recruitment. External methods: CAMPUS RECRUITMENT: Different types of organizations like industries, business firms, service organizations, social or religious organizations can get inexperienced candidates of different types or from various educational institutions like colleges and universities impacting education in Science, Commerce, Arts, Engineering and Technology, Agriculture, Medicine, Management Studies etc., and trained candidates in different disciplines like vocational, engineering, medicine from the training institutes like Vocational Training Institution of State Governments in various trades, National Industrial Training Institutes for Engineers etc. PRIVATE EMPLOYMENT AGENCIES/CONSULTANTS: Public employment agencies or consultants perform recruitment functions on behalf of a client company by charging fees. These agencies function effectively in the recruitment of executives. Hence, they are also called executive search agencies. Most of the organizations depend on this source for highly specialized positions and executive positions. PROFESSIONAL ORGANISATIONS: it maintains complete bio-data of their members and provides the same to various organizations on requisition. They also act an exchange between their members and recruiting firms in exchanging in information, clarifying doubts. DATA BANKS: the management can collect the bio-data of the candidates from different sources like employment exchange, educational training institutes, candidates etc. and feed them in the computer.

 CASUAL APPLICANTS: candidates apply casually for jobs through mail or hand over the applications in the personnel department. It will suitable source for temporary and lower level jobs. SIMILAR ORGANISATIONS: experienced candidates are available in organizations producing similar products are engaged in similar business. This would be the most effective source for executive positions and for new established organisations or diversified or expanded organisations. TRADE UNIONS: Unemployed or underemployed persons or employees seeking change in employment put a word to the trade union. The trade union leaders are aware of the availability of candidates. PUBLIC EMPLOYMENT EXCHANGES: the government set-up Public Employment Exchanges in the country to provide information about vacancies to the candidates & to help the organizations in finding out suitable candidates. MODERN METHODS OF RECRUITMENT: A number of modern recruitment sources are being used by the corporate sector in addition to traditional sources. Internal methods: EMPLOYEE REFERRALS: Present employees are well aware of the qualifications, attributes, experience and emotions of their friends and relatives. They are also aware of the job requirements and organizational culture of their company. HR managers of the company depend on the present employees for reference of candidates for various jobs. This source reduces the cost and time required for recruitment. Further this source enhances the effectiveness of recruitment. i. External methods: WALK-IN: The busy organizations and the rapid changing companies do not find time to perform various functions of recruitment. They advise the potential candidates to attend for an interview directly and without a prior application on a specified date, time and at a specified place. CONSULT-IN: The busy and dynamic companies encourage the potential job seekers to approach them personally and consult them regarding the jobs. HEAD-HUNTING: the companies request the professional organizations to search for the best candidates particularly for the senior executive positions. The professional organizations search for the most suitable candidates and advise the company regarding the filling up of the positions. BODY SHOPPING: Professional organizations and the hi-tech training institutes develop the pool of human resources for the possible employment. The prospective employers contact these organizations to recruit the candidates. The professional and training institutions are called body shoppers and these activities are known as body shopping. MERGERS AND ACQUISITIONS: Business alliances like acquisitions, mergers and takeovers help in getting human resources. In addition, the companies do also have alliances in sharing their resources on ad-hoc basis.

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E-RECRUITMENT or TELE RECUITMENT: The technology revolution in telecommunications helped the organizations to use internet as a source of recruitment. The job seekers send their applications through e-mail using the internet. Alternatively, job seekers place their bio-data in the WWW/internet, which can be drawn by the prospective employers depending upon their requirements. OUTSOURCING: Some organizations recently started developing human resource pool by employing the candidates for themselves. These organizations do not utilize the human resources, instead they supply HRs to various companies based on their needs on temporary or ad-hoc basis. Merits of Internal Sources:1. Improves Morale:- The internal sources of recruitment will boost morale of employees. They are assured of higher positions whenever vacancies arise. Existing employees are given preference in promotions. Outsiders are employed only when suitable candidates are not available from within. 2. Proper Evaluation:- The management is in a better position to evaluate the performance of existing employees before considering them for higher positions. An outsider employed just on the basis of an interview may not prove suitable later on. The service records of existing employees will be a guide to study their suitability for ensuring vacancies. 3. Economical:- The method of internal recruitment is economical also. The cost incurred in selecting a person is saved. Moreover, internal candidates do not require any feel a part and parcel of the organization and will always try to promote its interests. 4. Promotes Loyalty:- Internal Sources of recruitment promote loyalty among employees. They are preferred to consider at the time of filling up higher positions. They will feel a part and parcel of the organization and will always try to promote its interests. Demerits of Internal Sources:1. Limited Options:- the recruitment of only internal candidates restricts the choice of management. The present employees may not be suitable to take up positions of higher responsibility but there will be no option. A person will be selected only out of the available candidates. The outside candidates, even though they may be suitable, will not get a chance to show their talent. Internal sources may dry up in the meantime and filling up of higher positions will become a problem. 2. Lack of Originality:- The present employees may not be able to bring new ideas. They will be accustomed to carry on things in the same old ways. New persons will bring fresh thinking and new methods may be tried. Merits of External Sources:1.Availability of suitable Persons:- Internal Sources, sometimes, may not be able to supply suitable persons from within. External sources will give a wide choice for selection to the management. A large number of applicants may be willing to join the organization. They will also be suitable as per the requirements of skill, training and education. 2.Brings New Ideas:- The selection of persons from outside sources will have the benefit of new ideas. The persons having experience in other concerns will be able to suggest new things and methods. This will keep the organization in a competitive position. The present

employees may not be able to infuse new thinking because their ways of thinking will remain the same. 3. Economical:- This method of recruitment may prove economical because new employees may not require much training for their jobs. Demerits of External Sources:1. Demoralization:- When new persons from outside join the organization then present employees feel demoralized because these positions should have gone to them. There will be a heart burning among old employees. Some employees may even leave the enterprise to find out better avenues in other concerns. 2. Lack of co-operation:- The old staff may not co-operate with the new employees because they feel that their right has been snatched away by them. This problem will be acute especially when persons for higher positions are recruited from outside. 3. Expensive:- the process of recruiting from outside is very expensive. It starts with giving costly advertisements in the media and then arranging written tests and conducting interviews. In spite of all this if suitable persons are not available among the applicants then the whole process will have to be repeated. 4. Problem of Maladjustment:- there may be a possibility that the new entrants have not been able to adjust in the new environment. They may not temperamentally adjust with the new persons. In such cases either the persons may leave themselves or management may have to replace them. Things have adverse effect on the working of the organization. SELECTION To select means to choose. Selection is the process of picking up individuals (out of the pool of job applicants) with requisite qualifications & competence t fill jobs in the organization. Definition According to Dale Yoder Selection is the process in which candidates for employment are divided into two classes-those who are to be offered jobs & those who are not. SELECTION PROCEDURE:The selection procedure consists of a series of methods or steps or stages by which additional information is secured about an applicant. At each stage facts may come to light which may lead to the rejection of an applicant. Selection procedure may be compared to a series of barriers which an applicant is required to cross before he is finally selected. The following steps are generally followed in a selection process: 1. Receipt and scrutiny of applications. 2. Preliminary interview 3. Blank Application form. 4. Tests 5. Interviews 6. Checking references. 7. Preliminary and final selection 8. Physical examination 9. Placement and orientation.

1. Receipt and Scrutiny of Applications:The receipt and scrutiny of applications is the first step in the process of selection. A receptionist in the personnel department gives information about new opening to the visitors and receives their applications. The scrutiny of applications is essential to take out those applications which do not fulfill the requirements of posts. Some people send applications even when they do not possess the required experience and qualifications. These applicants, if called for preliminary interviews, will waste their own time and that of the company. These applications should out rightly be rejected and information should be sent to the applicants in this regard. II. Preliminary Interview:Preliminary interview is the first occasion when applicants come into contact with company officials. This interview is to see whether applicants are suitable for the company both mentally and physically. The candidates are asked questions regarding his educational qualifications, experience, age, hobbies, etc., Since rejection rate is high at preliminary interview, the interviewer should be courteous, kind, receptive and informal. He should give a good account of the company so that the applicant takes a good view of it and hopes to apply again whenever new opening comes. The applicants selected at preliminary interview are given blank application forms for supplying detailed information. III. Blank Application Form:A blank application form is a widely accepted device for getting information from a prospective applicant. This is a way of getting written information about candidates particulars in his own handwriting. It enables the personnel department to draw tentative inferences about the applicants suitability for employment. The information collected in the application form may also be circulated to various members of selection committee for enabling them to make a view about different applicants. The information collected in blank application relates to the following particulars:1) Bio-data:- Bio-data includes name of the applicant, fathers name, date of birth, place of birth, permanent address, height, weight, identification mark, marital status, physical disability, etc., 2) Educational Qualifications:- This part of educational qualifications relates to education acquired, institutions attended, percentage of marks, distinctions achieved, technical education acquired, subjects studied, areas of specialisation. 3) Work Experience:- Application blank also enquires about previous experience, similar or other jobs held, nature of duties, salaries received, names of previous employers, reasons for leaving the present job.

4) Curricular Activities:- The information about participation in extra-curricular activities like N.S.S., N.C.C debates and declamations, sports, etc., is also received in blank application form. 5) References:- The applicant is also asked to give some references from where an enquiry may be made about his nature and work. The references are normally the persons with whom the applicant has worked but are not related to him. 6) Salary Demanded:- the salary demanded by the applicant is also given in the application blank. An attempt is made to elicit maximum information in applicant blank. The information asked for should be relevant and specific. It should have relevance to the post he has applied for the information collected should be brief and to the point. Questions requiring essay-type answers should be avoided. Screening of application or resume: The candidates qualifications, family background, experience, age, skills etc., of the candidate provided in the resume are analyzed and compared with the job analysis in order to find the match between the job and candidates. Some of the candidates are selected at this level for further stages. IV. Written test: Candidates found suitable at the first level are called for written test. The written test examines the candidates knowledge in the job related areas and aptitude. Some candidates are selected at this stage based on their scores. Tests are used to determine the applicants, ability, aptitude and personality. TYPES OF TESTS Aptitude Tests: Aptitude test help determine a persons potential to learn in a given area. Intelligence tests: it generally measure intelligence quotient of candidate. It measures capacity for comprehension, reasoning, word fluency, verbal comprehension, numbers, memory and space. Emotional Quotient: most of the organizations realized that emotional involvement & commitment of the employees determine their contribution to the company rather than their intelligent quotient. Skill tests: these test measures the candidates ability to perform artistic jobs, product design, design of tools, machinery. Psychomotor test: it measures abilities like dexterity, motor ability and eye hand coordination of candidates. Mechanical aptitude test: these tests measure capacities of spatial visualization, perpetual speed & knowledge of mechanical matter. These tests are useful for selecting apprentices, skilled, mechanical employees, technicians etc. Clerical aptitude test: measure specific capacities involved in office work. Items of this test include spelling, computation, comprehension, copying, word measuring etc.

 Interest test: Interest tests are used to measure an individuals activity preferences. These tests are particularly useful for students considering many careers or employees deciding upon career changes. Achievement tests: it is conducted to measure the value of a specific achievement when an organization wished to employ experienced candidates. Job knowledge test: a candidate is tested in the knowledge of a particular job. Work sample test: a portion of actual work is given to the candidate as a test and the candidate is asked to do it. Situational test: in this test, the candidate is asked either to cope with the situation or solve critical situations of the job. Group discussion: this test is administered through the group discussion approach to solve a problem under which candidates are observed in the areas of initiating, leading, proposing valuable ideas, conciliating skills, oral communicating skills, co-ordinating & concluding skills. In basket: candidate is supplied with actual letters, telephone & telegraphic message, reports & requirements by various officers of the organization, adequate information about job & organization. The candidate is asked to take decisions on various items based on in basket. Personality test: Personality tests are given to measure a prospective employees motivation of function in a particular working environment. Other tests Polygraph test: It is designed to ensure accuracy of the information given in the applications. Medical test: Medical tests reveal physical fitness of a candidate. With the development of technology, medical tests have become diversified. Graphology test: It is designed to analyze the handwriting of an individual. It has been said that an individuals handwriting can suggest the degree of energy, inhibitions and spontaneity, as well disclose the idiosyncrasies, and elements of balance and control. a. b. c. d. e. f. g. h. Uses of tests: It provides a base for proper assessment It saves a lot of time & money for the company It acts as a more reliable source for predicting the overall suitability of candidates for employment It reduces labour turnover A psychological test helps to know the behavioural pattern of the candidates Aptitude test helps to check intelligence, learning capacity & mental dexterity Achievement tests helps to know the knowledge & work experience & efficiency of the candidates Personality tests help to know the personal characteristics, imaginative skills, stree & emotional control etc of the candidates

i. Interest test helps to identify the areas of interest of the candidate for better use of his skills in the organization Characteristics of a good Test:A good test the following characteristics:1. Reliability:- A test should be reliable. Reliability of a test means that it gives same results when applied to a person at different times. A test will not be reliable if it gives varied results when applied to the same person. For example, an intelligences test is applied to a person on Sunday and he gets a score of 100. The test is applied again to the same person on Wednesday and it gives a score of 120. This test will not be called reliable because it has given varied results. 2. Objectivity:- The test should be similarly applicable to different persons. The results of the test should not have a bias in favour of persons with particular education or technical background. It should be so constructed that two or more persons can score the responses to items, questions or tasks in the same way. 3. Consistency:- A good test should give consistent results when carried out on different persons at different times. For example, a test shows x superior to y when it is applied on a particular day. If the test is repeated on the same persons on a different day it should again show the superiority of x over y. if this is so the test will be consistent. 4. Standardisation:- A good test must be standardised. It may be administered under standard conditions to a group of persons who are representatives of the individual for whom it is intended. The methods and procedures for conducting and measuring results should also be standardised. Limitations of tests The results of a test may not be correct always It may based on bias & hence may result in wrong use Sometimes it may fail to attract the competent candidate It is a costly means, where only a small number of candidates are to be tested Discrimination of the person who conducts the tests may result in failure of tests. V. Employment interview Application blank and tests give enough information about the applicant but it is still not sufficient to make a final selection. Interview may be taken to know more about the candidate and give him information about the job he may be required to undertake. It is a method by which an idea about an applicants personality can be obtained by face to face contact. In the words of Scott, an interview is a purposeful exchange of ideas, the answering of questions and communication between two or more persons. The purpose of exchange of ideas is to get information and give information. The candidate also gets a chance to know about the company and the nature of his job. Interview enables the interviewer to judge

certain qualities, like manners, appearance, ability to speak, grasp of things, of the prospective candidate before he is selected. VI. References and background checks Many employers request names, addresses, and telephone numbers or references for the purpose of verifying information and, perhaps, gaining additional background information on an applicant. Previous employers, known public figures, university professors, neighbors or friends can act as references. Previous employers are preferable because they are already aware of the applicants performance. But, the problem with these references is the tendency on the part of the previous employers to over-rate the applicants performance just to get rid of the person. VII. Selection decision After obtaining information through the preceding steps, selection decision- the most critical of all the steps-must be made. The final decision has to be made from the pool of individuals who pass the tests, interviewers and references checks. VIII. Physical examination After the selection decision and the job after offer is made, the candidate is required to undergo a physical fitness test. A job offer is, often, contingent upon the candidate being declared fit after the physical examination. The results of the medical fitness test are recorded in a statement and are preserved in the personnel records. IX. Placement and Orientation:Even after going through the rigorous procedure as explained in various steps, the selection procedure is not complete. The placement and orientation of the employee is also an important step in this direction. The selected candidate should be given copies of rules, regulations, procedures, etc., followed in the company. He should be given a detailed description of the job he is going to be assigned. He should be introduced to his immediate superior and subordinate and also told about his authority-responsibility relationship. Besides job-orientation the selected candidate should be given proper information about the working of the company also. He may be informed about the activities of the company, products manufactured, services provided, etc., the employee may not be aware about the location of the canteen, toilets, dispensary, recreation room etc., all such pieces of information may be provided to him by taking him round the factory. This work may be assigned to the superior whom he has been attached. Proper orientation of an employee will help him to adjust easily in the new environment of the organization PLACEMENT Placement is the determination of the job to which an accepted candidate is to be assigned job & his assignment to that job.

Problems in placement Placement is a crucial task. It needs a clear-cut match between the employees skills, knowledge, value system, aptitude & attitude to the job description & job specification. Though HR Manager takes all possible precautions, some problems in placement crop up. These problems include: 1. Employee expectations: employee expectations from the job is the main source for the problem in placement. If the employee expects high salary, independent & challenging work & the job offers low salary, dependent & routine work, the employee finds himself misfit to the job. 2. Job expectations/ description: sometimes the expectations from the employee are more than the employees abilities or skills. Then the HR manager finds the mismatch between the job & the employee. 3. Change in technology: the technological changes bring radical changes in job description & specification. 4. Changes in organizational structure: the business grand strategies like mergers, acquisition, downsizing, delaying etc. result in changes in organizational structure & thereby changes in the jobs. These changes result in misfit between the employee & the job. 5. Social & psychological factors: the social & psychological factors involved in team work or group formations sometimes result in mismatch.