HCM - Human Resource Planning|Human Capital Management notes for B.com

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UNIT 2:

HUMAN RESOURCE PLANNING, RECRUITMENT & SELECTION

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Human Resource Planning – Meaning,

Human resource planning (HRP) is the continuous process of systematic planning by which management determines how an organisation must move from its current manpower position to its desired manpower position. Human resource planning ensures the best fit between employees and jobs while avoiding manpower shortages or surpluses.

Importance of Human resource planning

1. HRP helps to assess future employment needs:

Human resource planning helps to assess future personnel needs whether it is a labour shortage or labour surplus.Many companies have a surplus of labour due to which they later offer schemes like voluntary retirement scheme to eliminate surplus employees.All these can be avoided through HRP as it helps to ensure employing proper number and type of employees

2.It puts the foundation for other HRM functions

Since human resource planning is the first step in all other HRM functions, it provides the information needed for HRM such as recruitment,selection,training etc.

3.It helps to cope with the change

Human resource planning helps the organisation to cope with the changing business environment in the areas of global market competition or technology or governement guidelines etc.which can bring change in the nature of the job

4.It is important from the perspective of investment

As human assets are considered now as most valuable assests for the success of organisation,HRP plays an important role in proper planning of future employees.

5.Helps in the expansion and diversification plan of the organisation

As more employees are required for the expansion and diversification of the organisation, HRP helps in the proper planning of employee requirement needed for the organisation.

6.Employee Turnover

As a small number of employee turnover is common in organisations human resource planning helps in replanning of further recruitment of employees.

7.Helps in the strategies regarding international expansion

When an organisation wants to expand internationally HRP helps an organisation to fill foreign subsidiary positions either from its home country or from foreign countries. This requires an effective HRP as international human resource planning can be very challenging.

8. HRP helps to conform with the government guidelines

HRP helps to take into consideration the government norms that has to be followed while planning to make recruitment like reservations kept by the government for different classes of weaker society.

Benefits of human resource planning

It provides scope for advancement and development of employees through training and development etc.
It checks the corporate plan of the organization.
It offsets uncertainty & change. This enables the organization to have right
men at right time and in right place.
It helps to anticipate the cost of salary enhancement, better benefits.
To foresee the need for redundancy and plan to check it or provide alternative employment in consultation with trade unions and government through remodelling and economic plans
To foresee the changes in values, aptitudes and attitude of human resources.
It helps to plan for physical facilities and better working conditions and other benefits like canteen,hospital,schools day care centres etc
Scope of human resource planning
It keeps the record of current manpower with the organization.
Assessing the future requirements of manpower for organization objectives.
To make the manpower recruitment plans.
To phase out the surplus employees.
To make a layout of a training programme for different categories of
employees.
Job Analysis
Job analysis is the process of studying and collecting information relating to the operations and responsibilities of a specific job.
Job analysis is the process of collecting information about nature of a job.Detailed study or examination of something (job) in order to understand more about it (job).to understand more about a specific job in order to optimise it. Job analysis is a systematic process of collecting complete information pertaining to a job.Job analysis is done by job analyst who is an officer have been trained for it.
Job analysis is a detailed examination of :
(1)tasks that make up a job (employee role),
(2) conditions under which an employee performing his/her job, and
(3) what exactly a job requires in terms of aptitudes , attitudes, knowledge, skills,
educational qualifications and the physical working condition of the employee
Job Description:
Job descriptions describe the duties, responsibilities, working conditions, and activities of a particular job. Job descriptions vary in terms of the level of details provided.It may specify the official to whom the position reports, specifications such as the skills or qualifications needed by the person in the job, information about the equipment, tools and work aids used, working conditions, physical demands, and a salary range.They are usually narrative and is developed by conducting a job analysis.
Job Specification:
Job specification detail the knowledge, skills, and abilities relevant to a job, including the education, experience, specialised training, personal traits etc.It is a specialised job description emphasising personnel requirement and specifically designed to facilitate selection and placement.
Job Enrichment :
It is a process that is characterised by adding dimensions to existing jobs to make them more motivating.It is the technique used to increase the satisfaction of employees by giving them authority and making full use of their abilities.The goal of job enrichment is to create a motivating job
Examples of job enrichment include adding extra tasks, increasing skill variety, adding meaning to jobs, creating autonomy, and giving feedback.
Recruitment
Recruitment is the processes of finding the apt candidates and inducing them to apply for
the job in an organisation.
According to Edwin B. Flippo, "Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization.“
The process of identification of different sources of personnel is known as recruitment.It is a positive process as it attracts suitable applicants who apply for suitable jobs.Recruitment is concerned with listing the candidates for consideration of selection to various jobs.It enables the management to select suitable employees for different jobs.

Methods or Process of Recruitment

I)Internal
a. Present Permanent Employees
Organizations consider the present employees for high level jobs due to availability of most suitable candidates for jobs or equally to the external source, to meet the trade union demands and to motivate the existing employees.
Organizations consider temporary or casual employees for low level jobs or trade union pressures or in order to motivate them on the present job.
b. Retired Employees
The organization retrenches the employees due to lack of work. The organization takes the candidates back due to lack of obligation and trade union pressure. The organizations prefer to re-employ their retired employees as token of loyalty to the organization.
d. Dependents of Deceased, Disabled, Retired /employees
Organisations provide employment to the dependents/ family members of deceased, disabled to build brand image & develop commitment.
e. Employee Referral
Present employees are aware of qualifications, attitude, experience and emotions of their friends and relatives. They are aware of job requirements and organizational culture of their company. Hence the HR Managers of the company depend on present employees for reference of the candidates for various jobs. This reduces time and cost required for recruitment
II)External sources:
a.Advertisement:
It is the best method of recruiting persons for higher and experimental jobs. The advertisement are given in local or national press, trade or professional journals. The prospective candidates evaluate
themselves against the requirements of job before sending their applications.
b.Employment exchanges:
Employment exchanges run by government are also good source of recruitment. Unemployed persons get themselves registered with these exchanges. Exchanges are suitable source of recruitment for
filling unskilled, semi-skilled and operative posts
c. Unsolicited applicants:
persons in search of employment may contact employers through telephone, by post or in person. Generally, employers with good reputation get unsolicited applications. If an opening is there then, these persons are considered for this job.
d. Professional organizations:
professional organizations maintains complete bio-data of their members and supply it to companies on demand. These organization also act as exchange between members and recruiting firm. This source of recruitment is found reliable for recruiting person at middle and upper levels of organization
e. Data banks:
The recruiting firms can prepare a data bank about various persons in different fields. They can collect information from educational institutions, employment exchanges, professional organizations etc.
f. Labor contracts:
It is quite common to engage contractors for the supply of labour. When workers are required for short periods and are hired without going through the full procedures of selection etc The persons hired under this system are generally unskilled workers.
g. Gate recruitment:
unskilled workers may be recruited at the factory gate. In some industries like jute. A large number of workers work as substitute whenever a permanent employee is absent.A notice on notice board of the company specifying the details of the job vacancies can be put. Such recruitment is called direct recruitment.
h. Campus recruitment:
colleges, universities, research laboratories are fertile ground for recruiters. In some companies recruiters are bound to recruit a large no of candidates from these constitutes every year. It is often an expensive process
i. Walk-ins, Write-ins, Talk-ins:
walk-in interviews are becoming very popular method of recruitment. The applicant just work in with their resumes for interviewers.
In write-ins, job seekers send written enquiries and they are asked to complete the application form for further processing.
Talk-ins are also becoming popular now-a-days. Job applicants are required to meet the recruiters, on an appropriated date for detailed talks. No application is required to be submitted in this case.
j.Artificial Intelligence
AI for recruiting technology allows recruiters to hire more efficiently, shortlist more accurately, and screen resumes with more fairness. AI powered tools add a layer of intelligence to the process of recruiting and is designed to automatically screen thousands of resumes .This helps to reduce time consuming tasks otherwise done manually.

Meaning Of Selection
Selection is the process of picking up individuals (out of the pool of job applicants) with requisite qualifications and competence to fill jobs in the organization
“Selection is the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success in a job.”
Steps in selection process:-
1)Preliminary screening
2) Application Form
3) Selection tests
4) Selection Interviews
5)Reference Checks
6) Medical Examination
7) Job Offer/Appointment letter
8) Employment

1.Preliminary screening

it is the process of sorting in which prospective candidates are given the necessary information about the job for which they have applied and their information with respect to job like educational qualification, work experience, other additional skills etc are also collected .Preliminary screening helps to eliminate candidates who are not fit for the job in the initial stage of selection itself.

2.Blank Application

The candidates who are selected in the initial screening are required to fill in a blank application form.In this the candidate will give all the necessary information such as qualifications, work experience and other personal details such as age,address etc.Different firms have different styles of application forms.A candidate should be very careful while filling the blank application as the details inside the form can used as a test device to check the abilities of the candidate.

3.Selection Tests

Firms offer selection tests to check the ability of candidates in different areas.Candidates are required to pass these tests in order to be eligible for selection to the required job..

There are different types of selection tests.They are as follows

i).Aptitude

General and mental aptitude test
Specific aptitude test

ii).Achievement

job knowledge test
work sample test

iii).Situational

Group Discussion
In-basket test

iv)Proficiency Test

v)Interest Test

vi)Personality Test

i)Aptitude test

The aptitude tests are used to measure the capacity of a candidate in learning process if given adequate training.It represents a candidates level of competency in performing a specific task.These tests are very promising for predicting an employees success .Aptitude test are divided

a)general and mental ability tests(intelligence tests)

b)specific aptitude tests such as

mechanical aptitude,clerical aptitude,psychomotor tests,achievement tests etc.

a)General and mental ability tests(intelligence tests)

used to check a candidates IQ or mental alertness.
the test checks the proficiency of the candidate in areas such as logical reasoning ability,data interpretation skills, basic language skills etc

b)Specific Aptitude tests

Mechanical aptitude tests

It checks the ability and skill of the candidate to handle mechanical work
It measures the specialised knowledge,perpetual speed and problem solving ability
this test is used for selecting candidates in apprentice or technician positions,or as mechanical employees etc.

psychomotor tests

This test is used to judge the psychomotor skills of the candidate such as motor ability and eye-hand coordination.
Such type of tests are used for semiskilled worker positions which need repetitive operations like packing,assembly etc.

Clerical Aptitude tests

These tests are done for candidates applying for clerical job positions in various firms
it checks the capacities required for clerical jobs such as spelling, computation,comprehension,copying skills etc.

Achievement tests

A candidates achievement i his career is tested in this test when the firm wishes to emply experienced candidate.
candidate is tested for his knowledge about the job and actual work experience in that particular job

In achievement test the following tests are done

a)Job knowledge test

Here the candidate is checked for his knowledge in the particular job position to which he has applied.
For example if a candidate has applied for a lecture job in maths he will be tested for his skills in that role such as his teaching skills, subject knowledge in different areas of maths etc.

b)work sample test

In work sample test a sample of actual work is given to the candidate to check his ability to do it.
For example if a candidate has applied for a lecture in management he will be asked to deliver a demo class on any topic related to management to check his work proficiency as a lecturer

iii)Situational tests

In situational tests the candidates skill in handling specific situations are tested.
This is done by giving candidate example scenarios and ask them questions based on that to check how the candidate can handle or react to such situations

situational test are classified as below

group discussion-it is for checking the leadership , communicating and coordinating skills of the candidate.
in basket test-this is done through 'in-basket' where the candidate is supplied with actual letters telegraphic messages and reports of various officers of the company.The candidate now has to take decision based on the 'in-basket' information.

iv)proficiency test-

it is for checking whether the claims which made by the candidate are true or not.Trade tests or skill tests are example of proficiency tests.

v)interest test

This is used to identify the patterns of interest of the candidate.By use of this test the company will get an idea of the areas of interest and concerns of the candidate.It will help to identify what types of jobs will be satisfying to the candidate.

vi)personality test

Personality tests helps in finding out emotional balance, maturity, temperament, etc., of the candidate. It design and use of these tests are very challenging as they are concerned with discovering clues to an individual’s emotional reactions, maturity, etc. Personality tests can be sometimes faked by sophisticated candidates and most candidates give socially acceptable answers which is one of its disadvantage
4.. Selection Interview:
Interview serves as a means of checking about the suitability of a candidate for the specific job.The employer can directly verify from the candidate the information given in the application forms and the tests results. For the candidate it provides an opportunity to enquire about the job details and other information about the job during interview. Managers get an opportunity to take a decision about their suitability for employment. Interview should not be biased and must be conducted in great depth to judge the suitability of the candidates.
5. Checking References:
After the selection process is over ,candidates who have been found suitable in the interviews and tests are required to give references.References are required to enquire about the conduct of the candidates and can be collected from the previous employers, or the colleges last attended or from any other reliable source.Organisations need to make, enquiries from at least two to three persons about the conduct of the prospective candidate. It is not necessary that this may produce the desired results because (i) no candidate will cite the name of a referee who might not speak favourably about him; (ii) the referee may sometimes do not respond; and (iii) due to a prejudice the referee may purposely speak against the candidate.
6. Medical Examination:
A medical examination of the selected employee is necessary for the company, to protect itself against the risk of claims for compensation from individuals who are afflicted with any form of disabilities. The medical examination should be done by a qualified and certified medical officer and the findings should be carefully recorded so as to give a complete medical history, the scope of current physical capacities, and the nature of disabilities, if any.But it should be kept in mind that, medical examination should not be used unfairly to reject an otherwise suitable candidate.
7. Final Approval:
After a candidate has cleared all the processes including the medical examination in the selection procedure, he is formally appointed by the company by issuing him an appointment letter . The appointment letter makes the candidate eligible to start working in the company based on the joining date mentioned and all the terms and conditions like probation period, salary, other benefits, leaves etc will be specified in the appointment letter.
8. Employment:
Candidates who give satisfactory performance during the probationary period are made permanent.
Definition of placement
Placement is “the determination of the job to which an accepted candidate is assigned and his assignment to that job. It is matching of what supervisor to think he can do with job demands with what he offers in form of payroll,companionship and promotional possibilities.

Identification of five dark qualities in an individual before selection process of selection and placement

1. Neuroticism

It is characterised by mood swings and instability in emotions.High value of this trait indicates mood swings sadness irritation and mental instability.People who are high in this trait will have difficulty in dealing with stress and can experience anxiety and stress.

2.Agreeableness

This indicates are very cooperative kind and affectionate.People who are high in agreeableness have care and concern about other people.They enjoy helping others and contributing to their happiness.They are always ready to help others in their need.

3. Extroversion

This trait is characterised by sociability and expressiveness.People who are high in this trait are sociable and enjoys being the centre of attraction of others.They can always initiate conversations and like to meet new people.

4.Openness

This trait has the characteristic of imagination and insight.People who are high in this trait are open to new challenges .They are very creative and are always ready to experiment with new things

5.Conscientiousness

This trait has the feature of high levels of thoughtfulness and goal oriented behaviours.People who are high on this trait are very much detail oriented and are very organised.They tend to finish tasks on time and always have a set schedule.

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