Content Page No

Summary of Case Study 02 - 02

Introduction to Human Resource Planning 03 - 07

Advises for the management on the importance of planning &

How head of hr should approach the hr planning function. 08 - 08

List of vacancies in line with the strategic priorities. 09 - 09

Appropriate recruitment strategy for the bank out lining in

Attracting the best talent 10 - 12

How the selection process to be lined up in order to select the

Most competent candidates at each level to the bank. 13- 16

Summary of Case Study

ABC Bank is the leading private owned commercial bank .It has been in operation for
last 12 years. ABC Bank has 40 Branches Island wide & Over 800 employees are
working for it. The bank offers conventional banking products, credit cards & insurance
products. ABC Bank is profit growth is 150% during the last year. Because of that on
annual strategic planning sessions the management team of the bank prioritize the
following aspects. The functional structure of the bank is as follow.

The Strategic priorities of the bank , To expand the branch network in another 15
branches, to established a state of art 24 hr call centre with staff members , To strengthen
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the credit card unit with 200 sales executives ,five sales supervisors & one sales manager,
to increase the back office staff to support the front line units.

CEO

Head of Head of Head of Head of Head of Head of

Branch credit Operation HR finance Marketing
cards

This case study report has been directed in order to identify the importance of the HR
Planning & how Head of HR Should approach the HR Planning function & Identify the
vacancies according to the strategic prioritize.Finally disuses a appropriate recruitment
strategy for the ABC Bank & my approach for attract the best talented & Selection
process of each level of the candidates & how to select most competent candidates to the
ABC Bank

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Introduction to Human Resource Planning

Human resource planning is one of the crucial aspects of human resource

management because it helps to ensure the needed manpower for organizational goal.
Human Resource Planning (HRP) may be defined as strategy for acquisition, utilization,
improvement and preservation of the human resources of an enterprise. The objective is
to provide right personnel for the right work and optimum utilization of the existing
human resources.

Definitions:

According to Coleman, "Manpower planning is the process of determining manpower

requirements and the means for meeting those requirements in order to carry out the
integrated plan of the organization".

According to Jeisler, "Manpower planning is the process including forecasting,

developing and controlling by which a firm ensures, it has the right number of people
and the right kind of people and at the right places at the right time doing things for
which they are economically most useful"

According to Dale S. Beach, "Human resource planning is a process of determining and

assuring that the organization will have an adequate number of qualified persons,
available at the proper times, performing jobs which meet the needs of the enterprise and
which provide satisfaction for the individuals involved."

Benefits/Importance of Human Resource Planning

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Human resource planning or manpower planning is necessary for ail organizations
because of following reasons:

To meet up requirements of the organization: To do work in the organization, every

organization needs personnel of desired skill, knowledge and experience. This human
resources requirement of organization can be effectively fulfilled through proper human
resource planning. It helps in defining the number of personnel as well as kind of
personnel required to satisfy its needs.

Counterbalance insecurity and change: There must be proper utilization of human and
non-human resources in the organization. Sometimes the organization may have adequate
non-human resources e.g. machines, materials and money but inadequate human
resources as a result, manufacturing process/production cannot be started. Human
resource planning helps to offset uncertainties and changes as far as possible and enables
to ensure availability of human resources of the right kind, at right time and at right place.

Right-sizing the human resource requirements of the organization: In an existing

organization, there is a constant need for right-sizing the organization. In the
organization, some posts may fall vacant as a result of retirement, accidents, resignations,
promotions or death of employees. Consequently, there is constant need of replacing
people. Human resource planning estimates future requirements of the organization and
helps to ensure that human resources of right kind, right number, in right time and right
place.

To meet expansion and diversification needs of the organization: It helps to execute

future plans of the organization regarding expansion, diversification and modernization.
Through human resource planning it is ensured that employees in right number and of
right kind are available when required to meet these needs of the organization. It ensures
that people of desired skills and knowledge are available to handle the challenging job
requirements.

Training and Development of Employees: There is constant need of training and

development of employees as a result of changing requirements of the organization. It
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provides scope for advancement and development of employees through training and
development etc. Thus, it helps in meeting the future needs of the organization of highly
skilled employees.

Fulfill Individual Needs of the Employees: It helps to satisfy the individual needs of the
employees for promotions, transfer, salary encashment, better benefits etc.

Helps Formulation of Budgets: It helps in anticipating the cost of human resources e.g.
salary and other benefits etc. It facilitates the formulation of human resource budget for
various departments/divisions of the organization. So, it may also help in, the formulation
of suitable budgets in an organization.

To Check Joblessness: In the exercise of right-sizing of employees by the organization,

some of the employees may become surplus. It means their services are no more required
in the organization. It tries to foresee the need for redundancy. It plans to check job loss
or to provide for alternative employment in consultation with various concerned parties
and authorities.

Why Human Resource Planning?

An Introduction was written to draw these issues to the attention of HR or line managers.
We address such questions as:
What is human resource planning?
How do organisations undertake this sort of exercise?
What specific uses does it have?
In dealing with the last point we need to be able to say to hard pressed managers:
Why spend time on this activity rather than the other issues bulging your in tray?
The report tries to meet this need by illustrating how human resource planning techniques
can be applied to four key problems. It then concludes by considering the circumstance is
which human resourcing can be used.

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The process of HRP involves various steps they can be explained with the help of the
above diagram

1. Personnel demand forecast: -

This is the very first step in HRP process. Here the HRP department finds out department
wise requirements of people for the company. The requirement consists of number of
people required as well as qualification they must possess.

2. Personnel supply forecast: -

In this step, HR department finds out how many people are actually available in the
departments of the company. The supply involves/includes number of people along with
their qualification.

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3. Comparison: -
Based on the information collected in the 1st and 2nd step, the HR department makes a
comparison and finds out the difference. Two possibilities arise from this comparison

No difference:-It is possible that personnel requirement = personnel supplied. In

this case there is no difference. Hence no change is required.

Yes, there is a difference:-There may be difference between supply and

requirement. The difference may be

Personnel surplus

Personnel shortage

4. Personnel surplus: -
When the supply of personnel is more than the requirement, we have personnel surplus.
We require 100 people, but have 125 people. That is we have a surplus of 25 people.
Since extra employees increase expenditure of company the company must try to remove
excess staff by following methods.
Termination
VRS/CRS

No recruitment

Layoff

5. Personnel shortage: - when supply is less than the requirement, we have personnel
shortage. We require 100 people; we have only 75 i.e. we are short of 25 people. In such
case the HR department can adopt methods like Overtime, Recruitment, Sub-contracting
to obtain new employee.

Advises for the management on the importance of Planning & How Head of HR
should approach the HR Planning function

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Manpower Planning is a two-phased process because manpower planning not only
analyses the current human resources but also makes manpower forecasts and thereby
draw employment programmes.

We have to look at the importance of the planning process in the ABC bank & advise the
management as the head of HR. So when we consider about the Manpower Planning is
advantageous to firm in following manner:

Shortages and surpluses can be identified so that quick action can be taken
wherever required.

All the recruitment and selection programmes are based on manpower planning.

It also helps to reduce the labour cost as excess staff can be identified and thereby
overstaffing can be avoided.

It also helps to identify the available talents in a concern and accordingly training
programmes can be chalked out to develop those talents.

It helps in growth and diversification of business. Through manpower planning,

human resources can be readily available and they can be utilized in best manner.

It helps the organization to realize the importance of manpower management

which ultimately helps in the stability of a concern.

Formulating policies on transfer, succession, relocation of manpower

List of vacancies in line with the strategic priorities.

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Following are vacancies in line with the strategic priorities in ABC Bank

Front of the house Operations New recruits

Branch Managers 15
Assistant Branch Managers 15
Cashiers 15
Internal Auditors 15
Banking Assistants 30

Back Office staff New recruits

HR Assistants 02
Network Administrators 02

Call centres New recruits

Manager - Customer Care 01

Assistant Manger - Customer care 01
Customer Care Executives 34

For the Credit Card division New recruits

Regional Sales & Marketing Manager 05

Sales Executives 45
Sales Assistants 30

Recruitment strategy for the bank out lining in attracting the best talent

The recruitment process is one of the most fundamental value added HR Processes. The
recruitment is especially critical for managers in the organization. The managers use the
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recruitment process intensively, and satisfaction with Human Resources is mostly about
the satisfaction with the recruitment process.

The recruitment process is designed to staff the organization with the new employees,
and it uses many different recruitment sources to attract the right talent in the defined
quality and within a defined time.

The goal of recruitment is to find the Right people to fit the available jobs in the
organization. When doing the recruitment, HR managers should always keep in mind
clearly that the purpose of recruitment and the aim of recruitment which I described
already. But it is not merely HR Managers task all other mangers inputs are very much
essential. Because they have to decide what kind of people they need, what are the
competencies they required to perform in order to achieve organizational overall
objectives.

Process of Recruitment in the Fine Foods has not taken place in proper way. There are
lot of errors in the recruitment process of this organization. There has been a high turn-
over of persons who were the incumbents of the Post of Director Marketing.

The suggested scheme of recruitment is described below.

1. Defining the requirements

2. Attracting Candidates
3. Selection Process
4. Induction

Defining the requirement

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First of all the manager of the particular department need to fill out a Job Requisition
form and submit to the HR Department. In this job requisition form manager need to
mention the following criteria.

Levels of recruitment required Whether the position is needed for a

managerial level or supervisory level or below.
Specific Demands What are the duties & responsibilities that are assigned to
that position.
Validity for Recruitment Manager need to give reasons why they need this
position / person to their department. Manager needs to justify the new
recruitment.
Planned / Un-planned Should look in to whether this position is in their HR
plan or not. If it is not in the plan manager should give reasons why this is
needed.

Job Analysis This is the analysis of the job. Manager should check why this job is
needed for the organization. This can be done by observations, questionnaire or interview
with the employee.

Job Description Justifying what had to be done in this position. What are the duties and
responsibilities of the job. Reporting Structure, Scope and the nature of job, authority and
influence and what are the tasks to be performed.

Job Specification This is about the person who is going to do the job. It is also called
the person specification. Employees competencies, qualifications and training he posses,
Experience and other special requirements are measured under the job specification.

Attracting Candidates
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Under this topic manager should need to think whether they are available internally to
hire them. Or whether we need them externally recruited. Internally recruitment is attract
the suitable candidates within the organization to fulfil the requirements. Internal
recruitment can be done through performance appraisals, internal adds, notices in the
board, memos etc . There are various methods of attract individuals externally. They
are,

Advertisements in newspapers
Job Centres / Job Banks
Employment Agencies
Campus Recruitment
Authorized Training Bodies
Personal recommendations
Executive Search
Walk-in method
Poaching

How the selection process to be lined up in order to select the most competent
candidates at each level to the bank

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Employee Selection is the process of putting right men on right job. It is a procedure of
matching organizational requirements with the skills and qualifications of people.
Effective selection can be done only when there is effective matching. By selecting best
candidate for the required job, the organization will get quality performance of
employees. It is the process of choosing the best individual from a group of applicants.

Moreover, organization will face less of absenteeism and employee turnover problems.
By selecting right candidate for the required job, organization will also save time and
money. Proper screening of candidates takes place during selection procedure. All the
potential candidates who apply for the given job are tested.

Selection involves choosing the best candidate with best abilities, skills and knowledge
for the required job.

The Employee selection Process takes place in following order-

1. Preliminary Interview: The purpose of preliminary interviews is basically to

eliminate unqualified applications based on information supplied in application forms.
The basic objective is to reject misfits. On the other hands preliminary interviews is often
called a courtesy interview and is a good public relations exercise.

2. Selection Tests: Jobseekers who past the preliminary interviews are called for tests.
There are various types of tests conducted depending upon the jobs and the company.
These tests can be Aptitude Tests, Personality Tests, and Ability Tests and are conducted
to judge how well an individual can perform tasks related to the job. Besides this there
are some other tests also like Interest Tests (activity preferences), Graphology Test
(Handwriting), Medical Tests, Psychometric Tests etc.

3. Employment Interview: The next step in selection is employment interview. Here

interview is a formal and in-depth conversation between applicants acceptability. It is
considered to be an excellent selection device. Interviews can be One-to-One, Panel
Interview, or Sequential Interviews. Besides there can be Structured and Unstructured
interviews, Behavioral Interviews, Stress Interviews.
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4. Reference & Background Checks: Reference checks and background checks are
conducted to verify the information provided by the candidates. Reference checks can be
through formal letters, telephone conversations. However it is merely a formality and
selections decisions are seldom affected by it.

5. Selection Decision: After obtaining all the information, the most critical step is the
selection decision is to be made. The final decision has to be made out of applicants who
have passed preliminary interviews, tests, final interviews and reference checks. The
views of line managers are considered generally because it is the line manager who is
responsible for the performance of the new employee.

6. Physical Examination: After the selection decision is made, the candidate is

required to undergo a physical fitness test. A job offer is often contingent upon the
candidate passing the physical examination.

7. Job Offer: The next step in selection process is job offer to those applicants who
have crossed all the previous hurdles. It is made by way of letter of appointment.

8. Final Selection

Interview planning and preparation

Interview planning and preparation is essential to conduct effective employment

interviews. The place of interview, members of the interview board, preparation of the
interview contents such as, providing information about the company, the job and the
expectations from the candidate.
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Induction
Familiarizing the new employee with his new surroundings and company rules and
regulations Company history products and major operations geography of the plant,
structure of the organization and function of various departments. General company
policy safety and accidents discipline and grievances, uniform and clothing and parking.

The selection process to be lined up in order to select the most competent candidates
at each level to the bank.

Depending on the level of recruitment, the selection process consists of following

combinations:
Aptitude Tests
Group Discussion (This method is primarily used for campus selection process)
Psychometric Profiling
Personal Interview
Aptitude Tests:

An aptitude test is an exam used to determine an individual's propensity to succeed in a

given activity. Aptitude tests assume that individuals have inherent strengths and
weaknesses, and are naturally inclined toward success or failure in certain areas based on
their inherent characteristics. An aptitude test does not test knowledge; it is not a test that
one can study for.

Numerical Tests

One of the most common forms of psychometric tests is number based. Mathematics is
crucial in everyday life and in almost all professions. This is why they are such a
common feature in psychometric testing. There are two distinct levels of numerical tests:
numeracy tests and numerical reasoning tests.

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 Deductive Reasoning Tests

These tests are designed to assess your logical thinking. Deduction questions may
examine your ability to apply a set of rules ("theory") onto a specific example. Deductive
reasoning tests can fall into three categories- verbal, numerical and nonverbal. While
these categories utilise the same skills, non-verbal reasoning uses shapes and patterns to
display information while verbal uses words and numerical uses numbers. Please see here
for more on deductive reasoning.

Group Discussion:

Based on case studies, the group discussions are mainly conducted to judge applicants on
their analytical thinking, approach to hypothetical building around business situations and
the ability to break down complex problems to arrive at simple solutions.

Psychometric Profiling:

A questionnaire - based psychometric tool that assesses the typical or preferred behaviour
of individuals in work settings. Applicants are required to complete the questionnaire
before they appear for the interview. This tool gives us a better understanding of the
applicant and is not used for elimination of applicants.

Personal Interview:

All applicants are expected to go through the interview round, which is the final step in
the selection process.

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