MBA606_Human Resource Management(Draft 3)-converted-converted

r•' INSTITUTE OF DISTANCE & OhLIhE LEARhIhG in UflIVEESITY CHANDIGARH UNIVERSITY Discover. Learn. Empower. MBA RESOURCE MANAGEMENT MBA606 www.cuchd.in

MASTER OF BUSINESS ADMINISTRATION SEMESTER II HUMAN RESOURCE MANAGEMENT MBA606

CHANDIGARH UNIVERSITY Institute of Distance and Online Learning Course Development Committee Prof. (Dr.) R.S.Bawa Pro Chancellor, Chandigarh University, Gharuan, Punjab Advisors Prof. (Dr.) Bharat Bhushan, Director – IGNOU Prof. (Dr.) Majulika Srivastava, Director – CIQA, IGNOU Programme Coordinators & Editing Team Master of Business Administration (MBA) Bachelor of Business Administration (BBA) Coordinator – Dr. Rupali Arora Coordinator – Dr. Simran Jewandah Master of Computer Applications (MCA) Bachelor of Computer Applications (BCA) Coordinator – Dr. Raju Kumar Coordinator – Dr. Manisha Malhotra Master of Commerce (M.Com.) Bachelor of Commerce (B.Com.) Coordinator – Dr. Aman Jindal Coordinator – Dr. Minakshi Garg Master of Arts (Psychology) Bachelor of Science (Travel &Tourism Management) Coordinator – Dr. Samerjeet Kaur Coordinator – Dr. Shikha Sharma Master of Arts (English) Bachelor of Arts (General) Coordinator – Dr. Ashita Chadha Coordinator – Ms. Neeraj Gohlan Academic and Administrative Management Prof. (Dr.) R. M. Bhagat Prof. (Dr.) S.S. Sehgal Executive Director – Sciences Registrar Prof. (Dr.) Manaswini Acharya Prof. (Dr.) Gurpreet Singh Executive Director – Liberal Arts Director – IDOL © No part of this publication should be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording and/or otherwise without the prior written permission of the authors and the publisher. SLM SPECIALLY PREPARED FOR CU IDOL STUDENTS Printed and Published by: TeamLease Edtech Limited www.teamleaseedtech.com CONTACT NO:- 01133002345 For: CHANDIGARH UNIVERSITY Institute of Distance and Online Learning CU IDOL SELF LEARNING MATERIAL (SLM)

CU IDOL SELF LEARNING MATERIAL (SLM)

CU IDOL SELF LEARNING MATERIAL (SLM)

First Published in 2020 All rights reserved. No Part of this book may be reproduced or transmitted, in any form or by any means, without permission in writing from Chandigarh University. Any person who does any unauthorized act in relation to this book may be liable to criminal prosecution and civil claims for damages. This book is meant for educational and learning purpose. The authors of the book has/have taken all reasonable care to ensure that the contents of the book do not violate any existing copyright or other intellectual property rights of any person in any manner whatsoever. In the event that the Authors has/ have been unable to track any source and if any copyright has been inadvertently infringed, please notify the publisher in writing for corrective action. 2 CU IDOL SELF LEARNING MATERIAL (SLM)

CONTENT UNIT -1 Human Resource Management............................................................................................4 UNIT -2 Job Analysis .........................................................................................................................17 UNIT -3 Human Resource Planning.................................................................................................33 UNIT –4 Recruitment And Selection ................................................................................................43 UNIT –5 Training And Development ...............................................................................................61 UNIT –6 Career Planning And Succession Planning......................................................................87 UNIT –7 Performance Appraisal ......................................................................................................98 UNIT –8 Compensation Management ............................................................................................116 UNIT -9 Managing Ethical Issues In Hrm .....................................................................................138 UNIT –10 Industrial Disputes .........................................................................................................148 UNIT –11 Managing Employee Grievances ...................................................................................163 UNIT –12 Contemporary Issues In HRM ......................................................................................175 3 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT -1 HUMAN RESOURCE MANAGEMENT Structure Learning Objectives Introduction Concept Meaning and Definition Functions and Challenges Qualities of HR Manager Brief Introduction to Strategic HRM Summary Key Words/Abbreviations Learning Activity Unit End Questions (MCQ and Descriptive) References LEARNING OBJECTIVES After studying this unit, you will be able to: • Explain concept, meaning and definition of Human Resource Management • State the functions and challenges of HRM • Identify qualities of HR Manager • Discuss a brief introduction of SHRM INTRODUCTION The management of human resources is an approach to people's management based on four fundamental principles. First, human resources are the most significant assets that an organisation has and the key to its success is their effective management. Second, if the company's personnel policies and procedures are closely linked to, and make a major contribution to, the achievement of corporate goals and strategic plans, this success is most likely to be achieved. Third, a major influence on the achievement of excellence will be exercised by the corporate culture and values, organisational climate and management behaviour that emanate from that culture. Therefore, this culture must be managed, which means that it may be necessary to change or strengthen organisational values, and that continuous effort will be required, starting from the top, to get them accepted and acted upon. Finally, HRM is about integration-getting all the organisation's members involved and working together with a sense of common purpose. 4 CU IDOL SELF LEARNING MATERIAL (SLM)

CONCEPT OF HUMAN RESOURCE MANAGEMENT HRM is a strategic approach to the acquisition, motivation, development and management of the organisation’s human resources. It is a specialised field that attempts to developing an appropriate corporate culture, and introducing programmes which reflect and support the core values of the enterprise and ensure its success. HRM is proactive rather than reactive, i.e., always looking forward to what needs to be done and then doing it, rather than waiting to be told what to do about recruiting, paying or training people, or dealing with employee relations problems as they arise. The techniques for the application of HRM will include many familiar functions of personnel managers, such as manpower planning, selection, performance appraisal, salary administration, training and management development. These will be overlaid by special programmes designed to improve communication systems, involvement, commitment, and productivity. Broadly, there are three meanings attached to the concept of HRM. In the first place, persons working in an organization are regarded as a valuable source, implying that there is a need to invest time and effort in their development. Secondly, they are human resources which means that they have their own special characteristics and, therefore, cannot be treated like material resources. The approach focuses on the need to humanise organisational life and introduce human values in the organisation. And thirdly, human resources do not merely focus on employees as individuals, but also on other social realities, units and processes in the organisation. These include the role or the job a person has in the organisation, the dyadic unit, (consisting of the person and his superior), the various teams in which people work, inter-team processes, and the entity of the total organisation. In its essence, HRM is the qualitative improvement of human beings who are considered the most valuable assets of an organization-the sources, resources, and end-users of all products and services. HRM is, no doubt, an outgrowth of the older process and approach. But it is much more than its parent disciplines, viz., personnel management, and behavioural science. HRM is also more comprehensive and deep-rooted than training and development. Its approach is multi-disciplinary from the beginning to the end. It is a scientific process of continuously enabling the employees to improve their competency and capability to play their present as well as future expected roles so that the goals of the organization are achieved more fully and at the same time the needs of the employees are also met to an adequate extent. HRM is a production model approach to personnel management. The HRM model is characterised as being employee-oriented with an emphasis on the maximisation of individual skills and motivation through consultation with the workforce so as to produce high levels of commitment to company strategic goals. It is a resource to be used to its fullest capacity. It is an asset to be invested in. HRM is concerned with both the structure of work in a firm and with all the related employment practices that are needed to carry out the work. HRM is not simply about HR or ‘people practices’, it is about the management of work and people in the firm. Managing people includes both individual and collective dimensions. The traditional personnel management is non-strategic, separate from the business, reactive, short-term, and constrained by a limited definition of its role as dealing with 5 CU IDOL SELF LEARNING MATERIAL (SLM)

mostly unionised and low-level employees. The major attention of traditional personnel function is on personnel administration or management while the major attention of HRM is on developing people and their competencies. If personnel management is curative, HRM is preventive. The key distinguishing feature of HRM is its evolving strategic role. HRM essentially emphasises and incorporates those expectations which are not being fulfilled through the traditional personnel management. It integrates in a meaningful way the various sub- systems like performance appraisal, potentiality appraisal and development, career planning, training and development, organisation development, research and systems development, rewards, employee welfare and quality of work life, industrial relations, and human resource information. Under the HRM approach, some basic assumptions about human resources are also different from the traditional approach. The important assumptions of HRM are as follows: 1) The members of an organisation are reservoirs of untapped resources. 2) There is scope for unlimited development of these resources. 3) It is more in the nature of self-development than development thrust from outside. 4) The organisation also undergoes development with the overall benefits along with the development of its members 5) The organisation further develops a culture in which utmost emphasis is placed on harmonious superior-subordinate relations, teamwork, collaboration among different groups of individuals, open communication, and above all, integration of the goals of the organisation with the needs of the employees. 6) Top management takes the initiative for HRM, formulates necessary plans and strategies, and creates an overall climate and support for its implementation. The management of human resources is more of an art than a science. In practice it is an “art” full of pitfalls, judgment calls, and learning from past mistakes. 6 CU IDOL SELF LEARNING MATERIAL (SLM)

MEANING AND DEFINITION Human Resource Management (HRM) is a process of bringing people and organizations together so that the goals of each are met. It is that part of the management process which is concerned with the management of human resources in an organization. It tries to secure the best from people by winning their wholehearted cooperation. In short, it may be defined as the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner. Definition - Edwin Flippo defines HRM as “planning, organizing, directing, controlling of procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved.” According to the Invancevich and Glueck, “HRM is concerned with the most effective use of people to achieve organizational and individual goals. It is the way of managing people at work, so that they give their best to the organization”. 7 CU IDOL SELF LEARNING MATERIAL (SLM)

According to Dessler (2008) the policies and practices involved in carrying out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising comprises of HRM. FUNCTIONS OF HRM The definition of HRM is based on what managers do. The functions performed by managers are common to all organizations. For the convenience of study, the function performed by the resource management can broadly be classified into two categories, viz. (1) Managerial functions, and (2) Operative functions (1) Managerial Functions: • Planning: Planning is a predetermined course of actions. It is a process of determining the organisational goals and formulation of policies and programmes for achieving them. Thus, planning is future oriented concerned with clearly charting out the desired direction of business activities in future. Forecasting is one of the important elements in the planning process. Other functions of managers depend on planning function. • Organising: Organising is a process by which the structure and allocation of jobs are determined. Thus, organising involves giving each subordinate a specific task establishing departments, delegating authority to subordinates, establishing channels of authority and communication, coordinating the work of subordinates, and so on. • Staffing: TOs is a process by which managers select, train, promote and retire their subordinates This involves deciding what type of people should be hired, recruiting prospective employees, selecting employees, setting performance standard, compensating employees, evaluating performance, counselling employees, training and developing employees. • Directing/Leading: Directing is the process of activating group efforts to achieve the desired goals. It includes activities like getting subordinates to get the job done, maintaining morale motivating subordinates etc. for achieving the goals of the organisation. • Controlling: It is the process of setting standards for performance, checking to see how actual performance compares with these set standards, and taking corrective actions as needed. 8 CU IDOL SELF LEARNING MATERIAL (SLM)

(2) Operative Functions: The operative, also called, service functions are those which are relevant to specific department. These functions vary from department to department depending on the nature of the department Viewed from this standpoint, the operative functions of HRM relate to ensuring right people for right jobs at right times. These functions include procurement, development, compensation, and maintenance functions of HRM. A brief description of these follows: • Procurement: It involves procuring the right kind of people in appropriate number to be placed in the organisation. It consists of activities such as manpower planning, recruitment, selection placement and induction or orientation of new employees. • Development: This function involves activities meant to improve the knowledge, skills aptitudes and values of employees so as to enable them to perform their jobs in a better manner in future. These functions may comprise training to employees, executive training to develop managers, organisation development to strike a better fit between organisational climate/culture and employees. • Compensation: Compensation function involves determination of wages and salaries matching with contribution made by employees to organisational goals. In other words, this function ensures equitable and fair remuneration for employees in the organisation. It consists of activities such as job evaluation, wage and salary administration, bonus, incentives, etc. • Maintenance: It is concerned with protecting and promoting employees while at work. For this purpose, virus benefits such as housing, medical, educational, transport facilities, etc. are provided to the employees. Several social security measures such as provident fund, pension, gratuity, group insurance, etc. are also arranged. It is important to note that the managerial and operative functions of HRM are performed in conjunction with each other in an organisation, be large or small organisations. Having discussed the scope and functions of HRM, now it seems pertinent to delineate the HRM scenario in India. CHALLENGES OF HRM The following are the challenges faced by Organizations in HRM due to changes in the business environment. Globalization: Growing internationalization of business has its impact on HRM in terms of problems of unfamiliar laws, languages, practices, competitions, attitudes, management styles, work 9 CU IDOL SELF LEARNING MATERIAL (SLM)

ethics etc. HR managers have a challenge to deal with more functions, more heterogeneous functions and more involvement in employee’s personal life. Corporate Reorganizations: Reorganization relates to mergers and acquisitions, joint ventures, take over, internal restructuring of Organizations. In these situations, it is difficult to imagine circumstances that pose a greater challenge for HRM than reorganizations itself. It is a challenge to manage employees’ anxiety, uncertainties, insecurities and fears during these dynamic trends. New Organizational Forms: The basic challenge to HRM comes from the changing character of competitions. The competition is not between individual firms but between constellations of a firm. Major companies are operating through a complex web of strategic alliances, forgings with local suppliers, etc. These relationships give birth to completely new forms of Organizational structure, which highly depend upon a regular exchange of people and information. The challenge for HRM is to cope with the implications of these newly networked relations, in place of more comfortable hierarchical relationships that existed within the Organizations for ages in the past. Changing Demographics of Workforce: Changes in workforce are largely reflected by dual career couples, large chunk of young blood between age and old superannuating employees, working mothers, more educated and aware workers etc. These dynamic workforces have their own implications for HR managers and from HRM point of view is a true challenge to handle. Changed Employee Expectations: With the changes in workforce demographics, employee expectations and attitudes have also transformed. Traditional allurements like job security, house, and remunerations are not much attractive today; rather employees are demanding empowerment and equality with management. Hence, it is a challenge for HRM to redesign the profile of workers, and discover new methods of hiring, training, remunerating and motivating employees. Weaker Society Interests: Another challenge for HRM is to protect the interest of weaker sections of society. The dramatic increase of women workers, minorities and other backward communities in the workforce has resulted in the need for Organizations to re-examine their policies, practices and values. In the name of global competition, productivity and quality the interests of the society around should not be sacrificed. It is a challenge of today’s HR managers to see that these weaker sections are neither denied their rightful jobs nor are discriminated against while in service. Contribution to the Success of Organizations: The biggest challenge to an HR manager is to make all employees contribute to the success of the Organization in an ethical and socially responsible way because the well-being of the societies to a large extent depends on its Organizations. QUALITIES OF A HUMAN RESOURCE MANAGER: The job of a human resource manager is quite complex and demanding and challenging. In order to be successful, several qualities are required in a human resource manager. Some of these qualities are: 1. Personal Attributes: 10 CU IDOL SELF LEARNING MATERIAL (SLM)

a. Intelligence – Like any other manager, a HR manager must be intelligent. He must be competent to perform activities relating to personnel better than his subordinates. This includes skills to communicate, articulate and understand. A good command over language, ability to draft policies etc. b. Communicative Skills – HR professionals have to communicate up to management, over to managers, out to potential, employees and down to all levels of current employees and they have to do it in writing, while speaking to large and small groups and increasingly through social media. They have to be convincing, caring and believable. They should have command over language, listening skill etc. c. Human Skills – Employees like managers, who are human and who take advantage of their authority. HR managers have to be good with all at all times but he should know how to deal with the employees in a more prudent way. It involves an objective mind, empathy, ability to discriminate b/w right or wrong, just or unjust and merit or demerit. d. Attentive Listener – A good HR manager is expected to handle difficulties and problems between employees at work and he will be required to listen to the problems with a sympathetic but objective ear. The need to be an attentive is very important. A HR manager makes sure that complete attention to the employees during meetings and discussions. e. Executing Skills – HR managers should be able to execute issues with speed and accuracy. He should be able to set standards of performance, coordinates, control and implement policies and programmes. f. Fairness and Firmness – HR managers use the key liaison b/w employees. These should remain unbiased while resolving issues. Firmness is required so that the softness is not taken for granted. He should be firm in his dealings with a soft approach. g. Commitment – Commitment to projects and work is important. If a manager is committed, he will be able to pull the team forward in trying times. He holds a vision for the collective team and moves a team closer to the end result. 2. Experience and Training: Training is industrial psychological, labour legislation and Industrial Relations are very useful for the HR manager. Experience in an organisation helps him to create a pertinent approach. To some extent, HRM is an art where practice makes one a successful manager. 11 CU IDOL SELF LEARNING MATERIAL (SLM)

a. Motivational Skill – This quality is required for keeping employees happy and satisfactory. The HR manager should be well versed with their employees’ interest, needs, hopes, desires and values without which adequate motivation is impossible. b. Conflict Management and Problem Solving – Everyone does not always get along with everyone else. High productivity demands that people work together at least civilly. HR has to find ways to allow that to happen and that’s to say nothing of the myriad other problems that hit HRs effective with problem-solving. c. Must be Skilful – In order to maintain the environment where people can share the vision, know the goals, understand their roles and can take full responsibility of their actions. HR managers must be skilful and qualitative. This can help towards an appreciation of the general management problems and a practical approach in meeting personnel problems. 3. Professionals Attitudes: HRM is fast emerging as a profession. A professional approach to the management of human resources is required in the global environment. He should possess technical, administrative and behavioural skills. Knowledge of different disciplines like sociology, psychology, management, engineering, economics and law is required to develop such skills and approach. a. Negotiation – Along with grey comes, the need to negotiate emdash. There are often two or more opposing views, and the successful HR manager, can find an acceptable middle ground. The goal is to end up with two parties that are satisfied with the outcome and that’s not often easy to achieve. b. Discrete and Ethical – HR professionals are the conscience of the company as well as the keepers of confidential information. As the needs of top management, he also monitors their actions toward employees to be sure that policies and regulations are followed. c. Empathetic – For a person to become a successful professional, it is very important for him/her to be empathetic. In fact, one should think from the employee’s point of view and be a patient listener while dealing with an employee’s grievances. d. Trustworthy – The HR manager should function in such a manner that employees are able to trust him/her. An HR manager who is not trustworthy can never do justice to his job. 4. Educational Qualifications: The following qualifications may be necessary to achieve success in additions to the above qualities: 12 CU IDOL SELF LEARNING MATERIAL (SLM)

a. Degree from a recognised university. b. Post graduate degree/diploma in HRM/HRD/Labour Welfare/Social Work/ Psychology/Industrial relations/MBA in specialisation in HRM. c. Degree in law (desirable/additional qualifications). d. Knowledge of local language. BRIEF INTRODUCTION TO SHRM Organisation consultants, business academics and practicing managers have come to accept the idea that constant change is a fact of organisational life in the present days. They have come to understand that change is inevitable and human resource management plays an important role in the process of change and human resource managers play a key role in determining the competitive success of any firm. Therefore, in the generic sense, the new view of human resource management has been referred to as “strategic human resource management (SHRM)”. The trends in the present businesses have undergone a sea change and today the customers or marketplaces are making demands on the organisations. Besides these, there are changes in the job mix (i.e. proportion of permanent versus causal labour), new technology and increasing pressures from competitors. Each of the above place’s additional pressures on the firms to be innovative and create new ways of doing business with new technologies, new products and new services to meet an increasingly diverse and demanding customer base. The firms now have to enhance the value of innovation and for this purpose they have to attract, train and retain employees of the highest quality and in addition, attempt to sustain the competitive advantage that the skills of these employees provide. For so doing, the organisations of the 21st century require a greater focus on the human element in organisations. From this realisation has come the approach to Managing Human Resources. What is SHRM? The traditional personnel department is both physically and psychologically separated from the ‘real work’ of the organisation whereas in the strategic view besides the functions of hiring, training and providing pay and benefits to employees, many organisations are developing new structural and cultural patterns to meet the competitive demand of their dynamic and international marketplace, implying that the role of the HR in these organisations has changed to meet these new challenges. The new strategic view of HR is that HR plays a central role in helping the organisations reach its strategic objectives and interacts fully with other functional areas within the firm. SUMMARY • Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. HRM is moving away from traditional personnel, administration, and 13 CU IDOL SELF LEARNING MATERIAL (SLM)

transactional roles, which are increasingly outsourced. HRM is now expected to add value to the strategic utilization of employees and that employee programs impact the business in measurable ways. • Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives. • In the emerging competitive world, role of HR manager is gaining lot of importance and he need to perform different roles which are: Humanitarian role, counsellor, mediator, spokesman, problem solver and change agent. • He has to face different upcoming challenges which are: Best way of using human resources, improving Organizational performance, integration of IT with human resources and managing diverse workforce etc. • The challenges faced by the Organization in HRM due changes in business environment are: Globalization, corporate reorganization, changing demographic of workforce, changed employees’ expectations, weaker society interests, and contribution to the success of Organization. • In today’s fast changing, challenging and competitive environment HRM has to take a proactive approach that is to seek preventive care in human relations. KEY WORDS/ABBREVIATIONS • Ability: A competence to perform an observable behavior or a behavior that results in an observable product. • Compliance: Adherence to laws, court decisions, regulations, executive orders, and other legal mandates governing affirmative action and equal employment opportunity. • Skill: A present, observable competence to perform a learned act. • Human Resource Management: It refers to a set of programmes, functions and activities related to recruitment, selection, training, development, compensation welfare of human resources of an Organization. • Human Resource Planning: Assessment of human resource requirement and developing plans to ensure inflow of right people to various functional departments at the desirable time. • Recruitment: Finding sources to obtain desired human resources. • Selection: Testing the qualities of a prospective employee and identifying and qualifying people for jobs. • Training: Imparting job-related skills to the selected candidates and also to the working employees LEARNING ACTIVITY 1. What functions does a human resource department normally perform? 14 CU IDOL SELF LEARNING MATERIAL (SLM)

……………………………………………………………………………………………..…………… ………………………………………………………………………………………….. 2. List out three challenges of HRM in Modern Management. ……………………………………………………………………………………………..…………… ………………………………………………………………………………………….. UNIT END QUESTIONS (MCQ AND DESCRIPTIVE) A. Descriptive Types Questions 1. Critically evaluate HRM as a disciplinary study. 2. Elaborate about the challenges in HRM and its relevance in present scenario. 3. State qualities of HR Manager. 4. In this era of free economy, what are the functions of HRM? 5. Are people always an organisation most valuable asset? Why or why not? 6. Identify the typical challenges of human resource management in today’s competitive world. 7. “HR Manager’s position in the company does not determine his voice in the policy- making on personnel matters”. Discuss. B. Multiple Choice Questions 1. Human Resource Management (HRM) functions are broadly classified into managerial functions and operative functions. The basic managerial functions of HRM are a. Planning, organizing, directing and controlling b. Job analysis, human resource planning, job specification and directing c. Induction, human resource planning, job analysis and controlling d. Induction, planning, organizing and recruitment 2. are the resources that provide utility value to all other resources. a. Men b. Material c. Money d. Machinery 3. Identify the managerial function out of the following functions of HR managers. a. procurement b. development c. organizing d. performance appraisal 15 CU IDOL SELF LEARNING MATERIAL (SLM)

4. Which of the following is an example of operative function of HR managers? a. planning b. organizing c. procurement d. controlling 5. The scope of human resource management includes a. procurement b. development c. compensation d. All of the above Answers: 1-a, 2-a, 3-c. 4-c, 5-d REFERENCES • Duari, Pravin. (2010). Human Resource Management. New York: Pearson Education. • Dessler, G. (2013). Human Resource Management. Delhi: Prentice-Hall. • Flippo, Edwin B. (1966). Personnel/Human Resource Management. New Delhi: Tata McGraw Hills. • Haldar, U.K. And Sarkar. (2012). Human Resource Management. New Delhi: Oxford & IBH. • Khandelwal, A. Human Resource Development in Banks. New Delhi; Oxford & IBH, 1988. • Rao, T.V., Strategies of Developing Human Resources: Experiences from 14 organizations. Ahmedabad, Indian Institute of Management, Working Paper. • Rao, T.V. and Abraham, E., A Survey of HRD Practices in Indian Industry, in Rao, T.V. and Pereira, D.F., Recent Experiences in HRD, New Delhi, Oxford & IBH, 1985. • www.hrmguide.net • http://3.bp.blogspot.com 16 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT -2 JOB ANALYSIS Structure Learning Objectives Introduction Features Goals Job Analysis Process Techniques for Data Collection Preparation of Job Description and Job Specification Summary Key Words/Abbreviations Learning Activity Unit End Questions (MCQ and Descriptive) References LEARNING OBJECTIVES After studying this unit, you will be able to: • State features, goals and process of job analysis • Identify techniques of data collection • Discuss preparation of job description & specification INTRODUCTION Job analysis is the process by means of which a description of the methods and procedures of doing a job, the physical conditions under which the job is done and the relation of the job to other jobs and conditions of employment are developed. The job description defines the scope of a job, its major responsibilities as well it’s positioning in the organization. Recruitment is another critical HR function. It is the process of identifying qualified and skilled persons for actual or anticipated vacancies in the organizations. It is important for the organisation to have good recruitment policies. Selection is a process of selecting a certain number of people, from the large number of applicants, who are most likely to perform their jobs with maximum effectiveness and remain with the company. FEATURES OF JOB ANALYSIS Job analysis is a process to establish and document the “job relatedness” of employment procedures such as training, selection, compensation, and performance appraisal. It is a process to identify and determine in detail the particular job duties and requirements and the relative importance of these duties for a given job. we can list out the features of job analysis as follows: 17 CU IDOL SELF LEARNING MATERIAL (SLM)

• Job analysis is a process of gathering relevant information about various aspects of a job and is concerned with the identification of tasks required to be performed as part of it. • It approaches the task of defining the role, context, conditions, human behavior,performance standards, and responsibilities of a job systematically. • It helps in establishing the job’s worth to an organization. In other words, it measures the value and contribution of a job to the growth of the organization. • It establishes job-relatedness, which is a crucial input for HR decisions involving recruitment, selection, compensations, training, health, and safety. GOALS The goals of job analysis are listed below: 1. Job analysis makes the work of personnel department scientific and more efficient. For example, as job analysis determines the skills of jobber, proper kind of employees can be recruited. So, the problems of mis-replacements don’t arise. As a result, productivity of employees will increase and they will achieve greater job satisfaction. Similarly, it will be equally helpful for promotions, transfers; etc. 2. Control of the work of employees also becomes easy. The administrative decisions taken after knowing all the details of the job are bound to be better. Moreover, the management can also have an idea of how much each employee should work, 3. The deficiencies of motion of the worker can be noted and corrected. This will help in reducing the exhaustion of workers and for improving the methods of working. Thus, productivity can beraised. 4. Job analysis can give an idea about risks and possibilities of accidents for a job. Steps can be taken to eliminate these chances and accidents rate can be brought down. In other words, it is helpful for security programme of the company. 5. As the detailed information about the job is available it will help to understand the job better. This will assist in making decisions as to what the employees should be taught and how should they be taught. Thus, job analysis is helpful in preparing training programmes. 6. Job analysis can also be useful for scientific wage and salary administration. It provides information regarding the efforts necessary for performance of job, skills required, experience essential and risks involved in the job. On the basis of all this is a scientific wage and salary policy can be decided. 18 CU IDOL SELF LEARNING MATERIAL (SLM)

7. Job analysis is also very much important for professional guidance. It specifies the requirements of each job and would help in determining that for which job a particular person is suitable. This will provide professional guidance to that person. 8. The job analysis helps in establishment of scientific wage and salary administration policy, which will reduce the scope of industrial disputes. 9. In short, job analysis is useful to keep up maximum efficiency in an industrial unit and better manpower planning. PROCESS OF JOB ANALYSIS Let’s discuss the job analysis process and find out how it serves the purpose. Job Analysis Process Identification of Job Analysis Purpose Who will conduct Job Analysis? How to conduct Job analysis Strategic design making Training of Job analysis Preparation of Job analysis Data Collection 19 CU IDOL SELF LEARNING MATERIAL (SLM)

Documentation verification and Review Developing job Description and specification Fig.2.1 Job Analysis Process ▪ Identification of Job Analysis Purpose: Well any process is futile until its purpose is not identified and defined. Therefore, the first step in the process is to determine its need and desired output. Spending human efforts, energy as well as money is useless until HR managers don’t know why data is to be collected and what is to be done with it. ▪ Who Will Conduct Job Analysis: The second most important step in the process of job analysis is to decide who will conduct it? Some companies prefer getting it done by their own HR department while some hire job analysis consultants. Job analysis consultants may prove to be extremely helpful as they offer unbiased advice, guidelines and methods. They don’t have any personal likes and dislikes when it comes to analyze a job. ▪ How to Conduct the Process: Deciding the way in which job analysis process needs to be conducted is surely the next step. A planned approach about how to carry the whole process is required in order to investigate a specific job. ▪ Strategic Decision Making: Now is the time to make strategic decision. It’s about deciding the extent of employee involvement in the process, the level of details to be collected and recorded, sources from where data is to be collected, data collection methods, the processing of information and segregation of collected data. ▪ Training of Job Analyst: Next is to train the job analyst about how to conduct the process and use the selected methods for collection and recoding of job data. ▪ Preparation of Job Analysis Process: Communicating it within the organization is the next step. HR managers need to communicate the whole thing properly so that employees offer their full support to the job analyst. The stage also involves preparation of documents, questionnaires, interviews and feedback forms. ▪ Data Collection: Next is to collect job-related data including educational qualifications of employees, skills and abilities required to perform the job, working conditions, job activities, reporting hierarchy, required human traits, job activities, duties and responsibilities involved and employee behavior. 20 CU IDOL SELF LEARNING MATERIAL (SLM)

▪ Documentation, Verification and Review: Proper documentation is done to verify the authenticity of collected data and then review it. This is the final information that is used to describe a specific job. ▪ Developing Job Description and Job Specification: Now is the time to segregate the collected data in to useful information. Job Description describes the roles, activities, duties and responsibilities of the job while job specification is a statement of educational qualification, experience, personal traits and skills required to perform the job. Thus, the process of job analysis helps in identifying the worth of specific job, utilizing the human talent in the best possible manner, eliminating unneeded jobs and setting realistic performance measurement standards. TECHNIQUES FOR DATA COLLECTION Gathering job-related information involves lots of efforts and time. The process may become cumbersome if the main objective of it is not known. Any information can be gathered and recorded but may be hazardous for health and finances of an organization if it is not known what is required and why. Before starting to conduct a job analysis process, it is very necessary to decide what type of content or information is to be collected and why. The purpose of this process may range from uncovering hidden dangers to the organization or creating a right job-person fit, establishing effective hiring practices, analyzing training needs, evaluating a job, analyzing the performance of an employee, setting organizational standards and so on. Each one of these objectives requires different type of information or content. While gathering job-related content, a job analyst or the dedicated person should know the purpose of the action and try to collect data as accurate as possible. Though the data collected is later on divided in to two sets - job description and job specification but the information falls in three different categories during the process of analyzing a specific job - job content, job context and job requirements. What to Collect? ▪ Job Content ▪ Job Context ▪ Job Requirements 1. Job Content: It contains information about various job activities included in a specific job. It is a detailed account of actions which an employee needs to perform during his tenure. The following information needs to be collected by a job analyst: ▪ Duties of an employee 21 CU IDOL SELF LEARNING MATERIAL (SLM)

▪ What actually an employee does ▪ Machines, tools and equipment’s to be used while performing a specific job ▪ Additional tasks involved in a job ▪ Desired output level (What is expected of an employee?) ▪ Type of training required Fig 2.2 Categorization of Job Analysis Information The content depends upon the type of job in a particular division or department. For example, job content of a factory-line worker would be entirely different from that of marketing executive or HR personnel. 2. Job Context: Job context refers to the situation or condition under which an employeeperforms a particular job. The information collection will include: ▪ Working Conditions ▪ Risks involved ▪ Whom to report ▪ Who all will report to him or her? ▪ Hazards ▪ Physical and mental demands ▪ Judgment Well like job content, data collected under this category are also subject to change according to the type of job in a specific division or department. 22 CU IDOL SELF LEARNING MATERIAL (SLM)

3. Job Requirements: These include basic but specific requirements which make a candidate eligible for a particular job. The collected data includes: ▪ Knowledge or basic information required to perform a job successfully ▪ Specific skills such as communication skills, IT skills, operational skills, motor skills, processing skills and so on ▪ Personal ability including aptitude, reasoning, manipulative abilities, handling sudden and unexpected situations, problem-solving ability, mathematical abilities and so on ▪ Educational Qualifications including degree, diploma, certification or license ▪ Personal Characteristics such as ability to adapt to different environment, endurance, willingness, work ethic, eagerness to learn and understand things, behavior towards colleagues, subordinates and seniors, sense of belongingness to the organization, etc. For different jobs, the parameters would be different. They depend upon the type of job, designation, compensation grade and responsibilities and risks involved in a job. Job Analysis Methods Though there are several methods of collecting job analysis information yet choosing the one or a combination of more than one method depends upon the needs and requirements of organization and the objectives of the job analysis process. Typically, all the methods focus on collecting the basic job- related information but when used in combination may bring out the hidden or overlooked information and prove to be great tools for creating a perfect job-candidate fit. Selecting an appropriate job analysis method depends on the structure of the organization, hierarchical levels, nature of job and responsibilities and duties involved in it. So, before executing any method, all advantages and disadvantages should be analyzed because the data collected through this process serves a great deal and helps organizations cope with current market trends, organizational changes, high attrition rate and many other day-to-day problems. Let’s discuss few of job analysis methods that are commonly used by the organizations to investigate the demands of a specific job. 23 CU IDOL SELF LEARNING MATERIAL (SLM)

Fig 2.3 Job Analysis Methods Most Common Methods of Job Analysis ▪ Observation Method: A job analyst observes an employee and records all his performed and non-performed task, fulfilled and un-fulfilled responsibilities and duties, methods, ways and skills used by him or her to perform various duties and his or her mental or emotional ability to handle challenges and risks. However, it seems one of the easiest methods to analyze a specific job but truth is that it is the most difficult one. Why? Let’s Discover. It is due to the fact that every person has his own way of observing things. Different people think different and interpret the findings in different ways. Therefore, the process may involve personal biasness or likes and dislikes and may not produce genuine results. This error can be avoided by proper training of job analyst or whoever will be conducting the job analysis process. This particular method includes three techniques: direct observation, Work Methods Analysis and Critical Incident Technique. The first method includes direct observation and recording of behavior of an employee in different situations. The second involves the study of time and motion and is specially used for assembly-line or factory workers. The third one is about identifying the work behaviors that result in performance. ▪ Interview Method: In this method, an employee is interviewed so that he or she comes up with their own working styles, problems faced by them, use of particular skills and techniques while performing their job and insecurities and fears about their careers. This method helps interviewer know what exactly an employee thinks about his or her own job and responsibilities involved in it. It involves analysis of job by employee himself. In order to generate honest and true feedback or collect genuine data, questions asked during the interview should be 24 CU IDOL SELF LEARNING MATERIAL (SLM)

carefully decided. And to avoid errors, it is always good to interview more than one individual to get a pool of responses. Then it can be generalized and used for the whole group. ▪ Questionnaire Method: Another commonly used job analysis method is getting the questionnaires filled from employees, their superiors and managers. However, this method also suffers from personal biasness. A great care should be takes while framing questions for different grades of employees. In order to get the true job-related info, management should effectively communicate it to the staff that data collected will be used for their own good. It is very important to ensure them that it won’t be used against them in anyway. If it is not done properly, it will be a sheer wastage of time, money and human resources. These are some of the most common methods of job analysis. However, there are several other specialized methods including task inventory, job element method, competency profiling, technical conference, threshold traits analysis system and a combination of these methods. While choosing a method, HR managers need to consider time, cost and human efforts included in conducting the process. PREPARATION OF JOB DESCRIPTION & SPECIFICATION Job Analysis is a primary tool to collect job-related data. The process results in collecting and recording two data sets including job description and job specification. Any job vacancy cannot be filled until and unless HR manager has these two sets of data. It is necessary to define them accurately in order to fit the right person at the right place and at the right time. This helps both employer and employee understand what exactly needs to be delivered and how. Both job description and job specification are essential parts of job analysis information. Writing them clearly and accurately helps organization and workers cope with many challenges while onboard. 25 CU IDOL SELF LEARNING MATERIAL (SLM)

Table 2.1 Job Analysis Though preparing job description and job specification are not legal requirements yet play a vital role in getting the desired outcome. These data sets help in determining the necessity, worth and scope of a specific job. Job Description According to Spriegel and Lansburgh, “job description emphasises the job requirement, whereas the job specification sets forth requirements sough in the person who is to perform the work”. According to Edwin Flippo, Job description is “an organised factual statement of the duties and responsibilities of a specific job. It should tell what it to be done, how it is done, and why.” Job description means describing the details of the job to be performed (job contents). It gives various details or pertinent facts about the job to be assigned or performed. The details given in job description are: (1) Nature and title of the job. (2) Duties required to be performed. (3) Location of the job, (4) Machines, tools and material required to be used. (5) Type of supervision received and given. (6) Relation with the other jobs in the organisation. (7) Working conditions for the job. (8) Hazards connected with the job. (9) Opportunities for promotion. 26 CU IDOL SELF LEARNING MATERIAL (SLM)

The purpose of job description depends on the level of details the job findings include. Job description carried for general purpose typically involves job identification (title, designation, location) and a statement of duties and functions of a prospective or existing employee. A specifically carried job description includes detailed information about the kind of job, how it is supposed to be performed and what is expected to be delivered. Let’s discuss the general and specific purpose of conducting a job description process. General Purpose of Job Description General purpose job descriptions are used by organizations to find the very basic information about a particular job opening. Though data includes worker’s duties but does not contain sub tasks, performance standards and basis for evaluating jobs and establishing right compensation packages. Advantages The main benefit of general-purpose job description is that it does not consume much time and quickly provides basic information to managers. It does not require much human efforts and is very easy and convenient to carry out. Additionally, a job analyst does not have to conduct deep research to gather the required details. Disadvantages The main disadvantage of general-purpose job description is that it does not provide managers with full-fledged information about job context and sub tasks. Sometimes, a manager may fail to extract correct information from such small amount of data. Specific Purpose of Job Description Specific purpose job description includes detailed information about job responsibilities of an employee. It also covers sub tasks, essential functions and detailed job duties. It involves huge amount of details such as what an employee needs to do, how it is to be done and what are the performance standards, etc. Advantages The main benefit of specific purpose job description is that it offers ample information to evaluate job performance and determine training needs of employees. It serves as a basis for all other HR processes including recruitment and selection, performance appraisal, compensation decision and many more. Disadvantages Though it assists managers in decision making process but it has its own limitations. The process, however, may take very long and consume lots of human efforts. Since, it involves collecting 27 CU IDOL SELF LEARNING MATERIAL (SLM)

detailed information; the biased nature of job analyst can cause severe problems. The data collected may not be 100 percent genuine. Therefore, it can be said that information collected during job analysis defines the purpose of job description. If data collected is extremely basic, it will serve only the general purpose and therefore, cannot be used for making management decisions. On the other hand, detailed data serves the specific purpose and can be easily used while making important decisions. Job specification Job specification may define as a catalogue of various qualities which a person doing a job should possess. Job specification is usually drawn up with the help of supervisory staff or with the help of psychologists. Job Specification gives details regarding the candidate who is supposed to do the job like qualifications, experience, qualities, aptitude, family background etc. It is an overall written summary of employee requirements. Job Specification (also called man specification) is based on job description. It’s states the minimum acceptable human qualifications and qualities required for performing a job. Such requirement is usually as noted below: (1) Educational and professional qualification. (2) Practical experience required if any. (3) Personality and mental qualities required. (4) Physical fitness. (5) Interpersonal relations skills required Purpose of Job Specification • Described on the basis of job description, job specification helps candidates analyse whether are eligible to apply for a particular job vacancy or not. • It helps recruiting team of an organization understand what level of qualifications, qualities and set of characteristics should be present in a candidate to make him or her eligible for the job opening. • Job Specification gives detailed information about any job including job responsibilities, desired technical and physical skills, conversational ability and much more. • It helps in selecting the most appropriate candidate for a particular job. Job description and job specification are two integral parts of job analysis. They define a job fully and guide both employer and employee on how to go about the whole process of recruitment and selection. Both data sets are extremely relevant for creating a right fit between job and talent, evaluate performance and analyse training needs and measuring the worth of a particular job. 28 CU IDOL SELF LEARNING MATERIAL (SLM)

SUMMARY • Jobs are important to individuals as well as organisations. They are subject to change. Job Analysis is a systematic investigation of the tasks, duties and responsibilities necessary to do a job. Job analysis information is useful for a variety, of organization purposes ranging from human resource planning to career counselling. • The end products of job analysis are (a) Job descriptions, a written statement of what the job holder does, and (b) job specifications, which list the knowledge, skills and abilities (KSAs) required to perform a job satisfactorily • Job analysis is designed to provide a reliable method of quickly and effectively identifying critical competencies (i.e. knowledge, skills and abilities) and establishing the qualifications for a job or role. • Job analysis – The procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for the job by collecting the following types of information: work activities; human behaviours; machines, tools, equipment, and work aids; performance standards; job context; and human requirements. • Job description – A list of a job’s duties, responsibilities, reporting relationships, working conditions, and supervisory responsibilities – one product of a job analysis. • Job specification – A list of a job’s “human requirements”: the requisite education, skills, knowledge, and so on – another product of a job analysis. KEY WORDS/ABBREVIATIONS • Job Analysis: Job analysis entails detailed study of a job with a view to writing detailed position descriptions with respect to different positions. Information procured issued is used in interviews and devising written selection tests, internal placements, as per requirements of a job and performance appraisal of employees. Research techniques are used for jobanalysis. • Job Description: Job description are prepared based on the information gathered in job analysis. Job descriptions entail written specifications of the nature of job, duties and qualifications required. Information is issued in job advertisements; application forms are devised based on the requirements specified therein. • Job Specification: Job specification also emerges out of a job analysis. Job Specification lists the behavior stipulations and accordingly, specifications, with respect to a job. In other words, character traits expected of prospective incumbents are listed as job specifications • Job: A group of positions similar in their significant duties such as technical assistant, computer programmers. • Job Design: The Job Design is about the agreement about the profile of the ideal job candidate and the agreement about the skills and competencies, which are essential. 29 CU IDOL SELF LEARNING MATERIAL (SLM)

• Job Classification: The grouping of jobs on some basis such as the nature of work done or the level of pay. For example, skilled, semiskilled and unskilled; Grade I, II and III officers in a Bank. • Position: A collection of tasks and duties which are performed by one person. For example, the PA to Principal receives visitors, takes dictation, operates computer, answers query, attends to complaints and helps students. • Task: An identifiable work activity carried out for a specific purpose. For example: typing a letter. LEARNING ACTIVITY 1. “Smaller organisations do not need job analysis for their jobs because most of theiremployees conduct a myriad of activities, too far-reaching for a standard job analysis”. Give your view point. …………………………………………………………………………………………….…… ………………………………………………………………………………………………………… ………. 2. Discuss the sources of errors in your own organisation or any organisation you are familiar with, that can distort or render job analysis information inaccurate. ……………………………………………………………………………………………..…………… ………………………………………………………………………………………………………….. UNIT END QUESTIONS (MCQ AND DESCRIPTIVE) A. Descriptive Types Questions 1. What do you understand by the term job analysis? State features of job analysis. 2. If you have to do job analysis, which process do you follow in doing so? 3. What is job description? Describe its features. How would you prepare a job description? Explain through an example. 4. Why is job analysis the foundation of many other HR activities? 5. Construct a form for a sample job description. Why is a job description necessary before developing a job specification? 6. Explain how you would carry out a job analysis in a company that had never had job descriptions. B. Multiple Choice Questions 1. An assessment that defines the jobs and behaviours necessary to perform the job is known as a a. job description 30 CU IDOL SELF LEARNING MATERIAL (SLM)

b. job specification c. goal-oriented job definition d. job analysis 2. Job analysis is concerned with which of the following human resource planning aspects? a. deciding how well someone is performing his or her job b. what behaviours are necessary to perform a job c. hiring someone to do a job d. estimating pay on job level in an organization 3. A written statement of what a job holder does, how it is done, and why it is done is known as . a. job specification b. process departmentalization c. goal-oriented job definition d. job description 4. A list of the minimum qualifications or requirements needed by an employee to perform a job is known as a . a. job analysis b. job description c. responsibility factor list d. job specification 5. Which of the following is not a component of job design? a. job enrichment b. job rotation c. job reengineering d. job outsourcing Answers: 1-d, 2-b. 3-d, 4-d, 5-d REFERENCES • Duari, Pravin. (2010). Human Resource Management. New York: Pearson Education. • Dessler, G. (2013). Human Resource Management. Delhi: Prentice-Hall. 31 CU IDOL SELF LEARNING MATERIAL (SLM)

• Flippo, Edwin B. (1966). Personnel/Human Resource Management. New Delhi: Tata McGraw Hills. • Haldar, U.K. And Sarkar. (2012). Human Resource Management. New Delhi: Oxford & IBH. • Aswathappa, A. (2002) Human Resources and Personnel Management: New Delhi: Tata Mc Graw. • Beddoe Robin Forbes (1988). How to prepare a job evaluation: Job description, working time Analysts • ILO (1986), Job Evaluation, ILO, GENEVA. • Saiyadain, M.S (2003) Human Resource Management (3rd ed), New Delhi: Tata Mc Graw • www.jobdescription.com 32 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT -3 HUMAN RESOURCE PLANNING Structure Learning Objectives Introduction Meaning & Definition Characteristics Significance Factors Affecting HRP Barriers to HRP. Summary Key Words/Abbreviations Learning Activity Unit End Questions (MCQ and Descriptive) References LEARNING OBJECTIVES After studying this unit, you will understand: • State the meaning & definition of Human resource planning • Discuss the characteristics & significance of Human resource planning • Describe factors affecting Human resource planning • Identify study barriers to HRP INTRODUCTION Human resource planning is the predetermination of the future course of action chosen from a number of alternative courses of action for procuring, developing, managing, motivating, compensating, career planning, succession planning and separating human element of enterprise. It determines a conscious choice of staffing decisions in an organization. HRP is the process of forecasting an organization’s future demand for, and supply of, the right type of people, in the right number. After HRP is done, recruitment and selection can be started. HRP helps in achievement of organisation by providing the right type and the right type of personnel. MEANING AND DEFINITION OF HRP Human resource is the most important asset of an organisation. Human resources planning is the important managerial function. It ensures the right type of people, in the right number, at the right 33 CU IDOL SELF LEARNING MATERIAL (SLM)

time and place, who are trained and motivated to do the right kind of work at the right time, there is generally a shortage of suitable persons. The enterprise will estimate its manpower requirements and then find out the sources from which the needs will be met. If required manpower is not available then the work will suffer. Developing countries are suffering from the shortage of trained managers. Job opportunities are available in these countries but properly trained personnel are not available. These countries try to import trained skill from other countries. In order to cope human resource requirements, an enterprise will have to plan in advance its needs and the sources. The terms human resource planning and manpower planning are generally used interchangeably. Human resource planning is not a substitute for manpower planning. Rather the latter is a part of the former i.e., manpower planning is integrated with human resource planning. Definition of HRP: According to E.W. Vetter, human resource planning is “the process by which a management determines how an organisation should make from its current manpower position to its desired manpower position. Through planning a management strives to have the right number and the right kind of people at the right places, at the right time to do things which result in both the organisation and the individual receiving the maximum long-range benefit.” Dale S. Beach has defined it as “a process of determining and assuring that the organisation 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.” In the words of Leon C. Megginson, human resource planning is “an integration approach to performing the planning aspects of the personnel function in order to have a sufficient supply of adequately developed and motivated people to perform the duties and tasks required to meet organisational objectives and satisfy the individual’s needs and goals of organisational members.” On the analysis of above definitions, human resource planning may be viewed as foreseeing the human resource requirements of an organisation and the future supply of human resources and making necessary adjustments between these two and organisation plans, and foreseeing the possibility of developing the supply of human resources in order to match it with requirements by introducing necessary changes in the functions of human resource management. Here, human resource means skill, knowledge, values, ability, commitment, motivation etc., in addition to the number of employees. Though accomplishment of organisational objectives and goals is the primary concern of the human resource planning, concern for the aspirations of the 34 CU IDOL SELF LEARNING MATERIAL (SLM)

people and their well-being has equal importance in it. In fact, the human resources planning must result in humanisation of work environment. CHARACTERISTICS OF HUMAN RESOURCE PLANNING: From the above definitions, the following characteristics of human resource planning can be explained: 1. Well Defined Objectives: Human resource needs are planned on the basis of company’s goals. HRP is a strategy for the acquisition, use, improvement and preservations of organisation’s human resources. It deals with policies and programs that are used in coordinating supply and demand, in order to attain the desired goals. 2. Determining Human Resource needs: Human resource plan must incorporate the human resource needs of the enterprise. The thinking will have to be done in advance so that the persons are available at a time when they are required. For this purpose, an enterprise will have to undertake recruiting, selecting and training process also. 3. Manpower Planning: It helps in forecasting manpower requirement in the organisation. It helps an organisation to staff itself with right people at the right time 4. Optimum utilization of resources: The basic purpose of HRP is to make optimum use of organisation’s current and future human resources. It is an integral part of corporate planning, since there can be no human resource plan without a corporate plan 5. Creating Proper Work Environment: Besides Forecasting and employing personnel, HRP also ensures that good working conditions are created. Employees are satisfied with their jobs and also should like to work in the organisation. SIGNIFICANCE OF HUMAN RESOURCE PLANNING 1. Future Personnel Needs: – Planning defines future personnel needs and this becomes the basis of recruiting and developing personnel. The planning facilitates the preparation of appropriate manpower budget for each department. This in turn helps in controlling manpower costs by avoiding shortages or excesses in manpower supply. 35 CU IDOL SELF LEARNING MATERIAL (SLM)

2. Coping with change: – Jobs are becoming more and more knowledge- oriented. This has resulted in a changed profile of HR. HRP enables an enterprise to cope with changes in competitive forces, markets, technology, products, and government regulations. 3. Creating Highly Talented Personnel: – Employees can be trained, motivated and developed in advance and this helps in meeting future needs for high- quality employees. 4. Protection of Weaker Sections: - In matters of employment and promotions, sufficient representation needs to be given to SC/ST candidates, physically handicapped, children of the socially and politically oppressed and backward-class citizens. These groups enjoy a given percentage of jobs, notwithstanding the constitutional provision which guarantees equal opportunities for all. A well-conceived personnel planning programme would protect the interests of such groups. 5. International Strategies: – International expansion strategies depend upon HRP. With the growing trend towards global operation, the need for HRP will grow, as well as the need to integrate HRP more closely into the organization’s strategic plans. HRP will grow increasingly important as the process of meeting staffing needs from foreign countries and the attendant cultural, language, and developmental considerations grow complex. 6. Foundation for Personnel Functions: – Systematic HRP forces top management of an organisation to participate actively in total HR management functions. When there is active involvement of top management, they will appreciate the real value of human resources in achieving organisational effectiveness. 7. Increasing investments in Human Resources: –The organisations make huge investments and so it compels proper Human resource planning for achieving effectiveness. An employee who gradually develops his/her skills and abilities becomes further more valuable resource. FACTORS AFFECTING HRP Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So, we can say that human resource planning is the primary activity of human resource management. A manager should consider the following factors when he or she makes human resource planning: • Employment. • Technological changes. • Organizational changes. • Demographic changes. 36 CU IDOL SELF LEARNING MATERIAL (SLM)

• Culture. • Shortage of skill due to labour turnover. • Pressure groups. • Economic factors. • Social factors. • Environmental factors. • Political and Legal System. Employment HRP is affected by the employment situation in a country. In countries where there is greater unemployment; there may be more pressure on the company from the government to appoint more people. For example, public sector enterprises are highly overstaffed in some countries, while few private enterprises are understaffed. Similarly, some companies may have a shortage of skilled labour and they may have to appoint people from other companies. Technical changes in society Technology changes at a very fast speed and new people having the required knowledge are required for the company. In some cases, the company may retain existing employees and teach them the new technology and, in some cases, the company has to dismiss existing people and appoint fresh people. Organizational changes Changes take place within the organization from time to time. For example, a company may diversify into new products or close down businesses in some areas, etc. In such cases, a company may hire or dismiss people according to the situation. Economic factors How much money is available for salaries, training and equipment is the most immediate concern in human resource planning. However, external economics plays an equally critical role. For example, people do not have much money to spend in an economic recession and tend to be much more selective in what they buy or the services they use. This means some industries, such 37 CU IDOL SELF LEARNING MATERIAL (SLM)

as those producing luxury items or non- essential services, sell less and may even have to lay off some staff. This, in turn, makes the local economy even more difficult. Social factors Social factors may influence the organization’s HR planning. Where there is a clear discrepancy of one social group, it’s a good idea to build in ways of opening up new opportunities. Technological factors New technology brings new skills requirements, so companies always need to be aware of proficiencies and training needs when planning human resources. New products and services also may require recruiting highly skilled employees or training existing employees to meet the need. Legal factors Employment law is the most significant sector of the legal system that affects human resource planning, and it changes all the time. HR managers must keep themselves up to date, and have an employment law specialist available to consult if necessary. Employment law changes must be reflected in company policy. Environmental factors Environmental factors might include where the business is located about finding sufficient appropriate staff or changes to the environment that mean a need for more or fewer employees. A simple example of environmental factors affecting human resource planning is the consideration of how the employees get to work safely during extreme weather; the Firm’s plan may need to include the possibility of telecommuting to keep everything going. Labour market The labour market comprises people with skills and abilities that can be tapped as and when the need arises. Although in many 3rd countries with surplus labour, there is a shortage of skilled people. We should take measures to make more skilled workers available in the country. When one talks about labour supply, the following deserve due consideration: the size, age, gender and educational composition of the population, the demand for goods and services in the country, the nature of production technology and the employability of the people. BARRIERS TO HRP Planners face significant barriers while formulating an HRP. The major ones are the following: 38 CU IDOL SELF LEARNING MATERIAL (SLM)

1. People question the importance of making HR practices future oriented and the role assigned to HR practitioners in formulation of organizational strategies. Their argument is simple-there are people when needed. Offer attractive package of benefits to them to quit when you find them in surplus. 2. HRP is entirely dependent on the HR forecasting and supply, which cannot be a cent per cent accurate process. 3. HR practitioners are perceived as experts in handling personnel matter, but are not experts in managing business. The personnel plan conceived and formulated by the HR practitioners when enmeshed with organizational plan, might make the overall strategic plan itself defective. 4. Employees and their unions feel that by HRP, their workload increases so they resist the process. 5. HR information often is incompatible with the information used in strategy formulation. Strategic planning efforts have long been oriented towards financial forecasting often to the exclusion of other types of information. 6. In Indian industries, HRIS is not much strong. In the absence of reliable data, it is not possible to develop effective HRP. 7. Conflicting may exist between short-term and long-term HR needs. For example, there arises a conflict between the pressure to get work done on time and long-term needs, such as preparing people for assuming greater responsibilities. Many managers are of the belief that HR needs can be met immediately because skills are available on the market as long as wages and salaries are competitive. These managers fail to recognize that by resorting to hiring or promoting depending on short-term needs alone, long-term issues are neglected. 8. labour absenteeism, labour turnover, seasonal employment, technological changes and market fluctuations are the uncertainties which HRP process might have to face. 9. There is conflict between quantitative and qualitative approach to HRP. Some people view HRP as a number game designed to track the flow of people across the departments. These people a strictly quantitative approach to planning. Others take a qualitative approach and focus on individual employee concerns such as promotability and career development. Best results would accrue if there is a balance between the quantitative and qualitative approaches. 10. Non-involvement of operating managers renders HRP ineffective. HRP is not strictly an HR department function. Successful planning needs a coordinated effort on the part of operating managers and HR personnel. 11. HRP is time consuming and expensive exercise, so industries avoid. SUMMARY • Human resource planning determines a conscious choice of patterns of acquiring human resources in an organization. In order to achieve the objectives of the organization, the HR planner should be concerned with the timing and scheduling of planning of human resources. 39 CU IDOL SELF LEARNING MATERIAL (SLM)

• Human resources planning is defined as the process for identifying an organisation's current and future human resource requirements, developing and implementing plans to meet these requirements and monitoring their overall effectiveness. • HR Planning is essentially the process of getting the right number of qualified people into the right job at the right time so that an organisation can meet its objectives. • The planning process may not always give exact forecasts and to be effective it should be a continuous process with provision for control and review • Organisations use HRP as a means of achieving greater effectiveness. • The HR Planning process, should be tuned to organizational objectives and strategies. • It includes forecasting the demand for employees, preparing manpower inventory, determining manpower gaps and formulating HR plans. • While developing HR Plans, managers should scan the external environment carefully to identify the effects of economic, social, competitive and governmental influences. • Man power planning can also be used as an important aid in framing the training and development programmes for the employees because it takes into account the anticipated changes in the HR requirements of organizations. • With the expansion of business, adoption of complex technology and professional management techniques, the process of human resource planning has assumed a great significance. • Human resource planning is a process of human resource development. The objective of human resource planning is to provide continuity of efficient manning for the total business and optimum use of manpower resources, although that optimum utilization of people is heavily influenced by organisation and corporate culture. • Human resource planning constitutes an integral part of corporate plan and serves the organisational purposes in more than one way. Human resource planning influences corporate strategy and is in turn influenced by it. KEY WORDS/ABBREVIATIONS • HRP: Human Resource Planning • HRM: Human resource Management • Human Resource Management: It refers to a set of programmes, functions and activities related to recruitment, selection, training, development, compensation welfare of human resources of an Organization. • Human Resource Planning: Assessment of human resource requirement and developing plans to ensure inflow of right people to various functional departments at the desirable time. 40 CU IDOL SELF LEARNING MATERIAL (SLM)

LEARNING ACTIVITY 1. Assuming you are a HRD Manager in an organisation, you need to create an HR staffing plan. Briefly explain what criteria will be undertaken and why? ……………………………………………………………………………………………..…………… ………………………………………………………………………………………………………. 2. Briefly describe the practices of human resource planning of your organisation. List out the reasons, why this practice is being adopted. ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… UNIT END QUESTIONS (MCQ AND DESCRIPTIVE) A. Descriptive Types Questions 1. Define and explain the term Human resource Planning. 2. Outline the steps involved in the Human Resource Planning process, if you have to do HRP. 3. Suppose you are going to HR plan, what barriers would you consider? 4. Explain the characteristics of HRP in your organization 5. Take an example of an IT firm, and state the significance of HRP. 6. Identify and discuss the factors affecting Human resource planning. B. Multiple Choice Questions 1. Which of the following factors state the importance of the Human Resource Planning? a. Creating highly talented personnel b. International strategies c. Resistance to change and move d. All of the above 2. Which of the following option is not the factor that hinders with the human resourceplanning process? a. Type and quality of forecasting information b. Time horizons c. Environmental uncertainties d. Unite the perspectives of line and staff managers 3. What is the major issue faced while doing personal planning? 41 a. Type of information which should be used in making forecasts CU IDOL SELF LEARNING MATERIAL (SLM)

b. Types of people to be hired c. Multiple positions to be filled d. All of the above 4. Which of the following is not the part of human resource planning? a. Analysing existing HR b. Implementation of HR plan c. Recruitment d. Forecasting HR 5. is the process of forecasting an organization’s future demand for, and supply of, the right type of people, in the right number a. Human resource Management b. Human Resource Planning c. Procurement d. Recruitment Answers: 1-d, 2-d, 3-a, 4-c, 5-b. REFERENCES • Duari, Pravin. (2010). Human Resource Management. New York: Pearson Education. • Dessler, G. (2013). Human Resource Management. Delhi: Prentice-Hall. • Flippo, Edwin B. (1966). Personnel/Human Resource Management. New Delhi: Tata McGraw Hills. • Haldar, U.K. And Sarkar. (2012). Human Resource Management. New Delhi: Oxford & IBH. • https://www.yourarticlelibrary.com • https://www.managementstudyguide.com • http://workforceonline.com • http://www.glue.umt.edu/vernita/ 42 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT –4 RECRUITMENT AND SELECTION Structure Learning Objectives Introduction Features of Recruitment Recruitment Process Sources of recruitment Recruitment Practices in India. Difference between Recruitment and Selection Selection Process The Selection Process in India. Summary Key Words/Abbreviations Learning Activity Unit End Questions (MCQ and Descriptive) References LEARNING OBJECTIVES After studying this unit, you will be able to: • State features and process of recruitment • Discuss the sources of recruitment & practices in India • Differentiate between recruitment and selection • Outline the steps in the selection process INTRODUCTION Recruitment is the development and maintenance of adequate manpower sources. It involves the creation of a pool of available human resources from which the organisation can draw when it needs additional employees. Recruiting is the process of attracting applicants with certain skills, abilities, and other personal characteristics to job vacancies in an organisation. According to Denerley and Plumblay (1969), recruitment is concerned with both engaging the required number of people, and measuring their quality. It is not only a matter of satisfying a company’s needs, it is also an activity which influences the shape of the company’s future. The need for recruitment may arise out of: (i) vacancies due to promotion, transfer, termination, retirement, permanent disability, or death; (ii) creation of vacancies due to business expansion, diversification, growth, and so on. 43 CU IDOL SELF LEARNING MATERIAL (SLM)

The function of recruitment is to locate the sources of manpower to meet job requirements and specification. Recruitment forms the first stage in the process which continues with selection and ceases with the placement of the candidate. Effective supply of varied categories of candidates for filling the jobs will depend upon several factors such as the state of labour market, reputation of the enterprise and allied factors. The internal factors include wage and salary policies, the age composition of existing working force, promotion and retirement policies, turnover rates and the kind of personnel required. External determinants of recruitment are cultural, economic and legal factors. Recruitment has been regarded as the most important function of personnel administration. Unless the right type of people is hired, even the best plans, organisation charts and control systems will be of no avail. A company cannot prosper, grow, or even survive without adequate human resources. Need for trained manpower in recent years has created a pressure on some organisations to establish an efficient recruitment function. FEATURES OF RECRUITMENT Some of the essential features of recruitment are: 1. Recruitment is a searching and attracting function – It is mainly concerned with searching and attracting the potential candidates towards organization. 2. Recruitment is not a selection – Recruitment involves searching the potential candidates and attracting them towards organization to apply for the job. But selection involves choosing suitable candidate among those who have applied for job. 3. It is a process – Recruitment is a process of series of activities like recruitment policy, sources of recruitment, technique of tapping those sources and evaluation of those sources etc. 4. It is a linking activity – Recruitment brings together those who have a job (employer) and those who search a job (employees) 5. It is a pervasive function – This function needs to be performed by all organizations which need human resources. 6. It is one of the functions of personnel management – It is an important function of personnel management as it helps in acquiring different number and types of persons for continued functioning of an organization. 44 CU IDOL SELF LEARNING MATERIAL (SLM)

RECRUITMENT PROCESS Recruitment is a process of finding and attracting the potential resources for filling up the vacant positions in an organization. It sources the candidates with the abilities and attitude, which are required for achieving the objectives of an organization. Recruitment process is a process of identifying the jobs vacancy, analyzing the job requirements, reviewing applications, screening, shortlisting and selecting the right candidate. To increase the efficiency of hiring, it is recommended that the HR team of an organization follows the five best practices (as shown in the following image). These five practices ensure successful recruitment without any interruptions. In addition, these practices also ensure consistency and compliance in the recruitment process. Fig 4.1 RECRUITMENT PROCESS Recruitment process is the first step in creating a powerful resource base. The process undergoes a systematic procedure starting from sourcing the resources to arranging and conducting interviews and finally selecting the right candidates. Recruitment Planning Recruitment planning is the first step of the recruitment process, where the vacant positions are analyzed and described. It includes job specifications and its nature, experience, qualifications and skills required for the job, etc. Mona This table is in color [it may have been 45 liftedfromthe net directly]. Please make it black and white so that the printing is CU IDOL SELF LEARNING MATERIAL (SLM) possible as the writing is in white color. If colors are removed - then printing will not be clear.

A structured recruitment plan is mandatory to attract potential candidates from a pool of candidates. The potential candidates should be qualified, experienced with a capability to take the responsibilities required to achieve the objectives of the organization. Identifying Vacancy The first and foremost process of recruitment plan is identifying the vacancy. This process begins with receiving the requisition for recruitments from different department of the organization to the HR Department, which contains − • Number of posts to be filled • Number of positions • Duties and responsibilities to be performed • Qualification and experience required When a vacancy is identified, it the responsibility of the sourcing manager to ascertain whether the position is required or not, permanent or temporary, full-time or part-time, etc. These parameters should be evaluated before commencing recruitment. Proper identifying, planning and evaluating leads to hiring of the right resource for the team and the organization. Job Analysis Job analysis is a process of identifying, analyzing, and determining the duties, responsibilities, skills, abilities, and work environment of a specific job. These factors help in identifying what a job demands and what an employee must possess in performing a job productively. Job analysis helps in understanding what tasks are important and how to perform them. Its purpose is to establish and document the job relatedness of employment procedures such as selection, training, compensation, and performance appraisal. The following steps are important in analyzing a job − • Recording and collecting job information • Accuracy in checking the job information • Generating job description based on the information • Determining the skills, knowledge and skills, which are required for the job The immediate products of job analysis are job descriptions and job specifications. Job Description Job description is an important document, which is descriptive in nature and contains the final statement of the job analysis. This description is very important for a successful recruitment process. 46 CU IDOL SELF LEARNING MATERIAL (SLM)