HRM – Module

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Ms. Sumina Susan Kochitty
 1. HRP – HR
Planning
Factors affecting HR Planning, HRP
Process, Requisites of a good HRP,
barriers to HRP
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HRP is the process of
forecasting a firm’s future
demand for, and supply of,
the right type of people in
the right number.”

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 After Job Analysis, What Next?
• JA analyzes the duties and human requirements for
each of the company’s jobs
• Next – decide what positions to fill, through HR
planning
• Build a pool of candidates for these jobs, by
recruiting internal or external candidates
• Have candidates complete application forms,
undergo initial screening interviews
• Use selection tools like tests, background checks,
physical exams to screen candidates
• Decide whom to make an offer to
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 HRP Process
1. Environmental Scanning
2. Organizational Objectives and Policies
3. HR Demand Forecast
4. HR Supply Forecast
5. HR Programming
6. HR Plan Implementation
7. Control and Evaluation of Programme

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 Environmental Scanning
• It refers to the systematic monitoring of the external forces
influencing the organization. They include:
– Economic factors, including general and regional conditions
– Technological changes, including robotics and automation
– Demographic changes, including age, composition and
literacy
– Political and legislative issues, including laws and
administrative rulings
– Social concerns, including childcare, and educational
facilities and priorities

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 Organizational Objectives and
Policies
• HR Plans need to be based on organizational objectives
• Specific characteristics in terms of number and
characteristics of employees should be derived form
organizational objectives
Are vacancies to be filled by promotions from within or hiring
from outside?
How to enrich an employee’s job? Should the routine and boring
jobs continue or be eliminated?
How to downsize the organization to make it more competitive?
How to ensure continuous availability of adaptive and flexible
workforce?

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 HR Demand Forecasting
• Demand forecasting is the process of estimating the future
quantity and quality of people required to meet future
needs of the organization

• Basis of the forecast is the annual budget and long term

corporate plan

• Internal and external factors must be considered

– External: competition, laws and regulatory bodies,
economic climate, etc
– Internal: budget constraints, production levels, OS, etc.

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 Forecasting Techniques
• Managerial Judgement
• Ratio Trend Analysis
• Regression Analysis
• Work study techniques
• Delphi Technique
• Flow Models

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 HR Supply Forecast
• Also called bench forecasting

• It measures the number of people likely to be

available from within and outside an
organization, after making allowance for
absenteeism, internal movements and
promotions, wastage and changes in hours and
other conditions of work.
• This analysis covers existing HR, Internal
sources of supply and external sources of supply

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 HR Programming

• The organization’s demand and supply forecast must be

balanced so that vacancies are filled by the right
employees at the right time.

HR Plan Implementation
• Implementation requires converting an HR plan into action
• A series of action programmes are initiated
– Recruitment
– Selection and Placement
– Training and development
– Retention plan
– Succession plan
– Redundance plan

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 Requisites for Successful HRP
• HRP must be recognized as an integral part of
corporate planning.

• Backing of top management

• Personnel records must be complete, up to

date and readily available

• The time horizon of the plan must be long

enough to permit any remedial action
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 • The techniques of planning should be best
suited to the data available and the degree of
accuracy required.

• Data collection, analysis and techniques of

planning and the plans need to be constantly
revised and improved upon

• The impact of external forces like

technological changes, etc need to be
considered while developing HRP
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 Barriers to HRP
• Perception about HRP
• HRP and Organizational Plan
• Conflicts between short term and long term
HR needs
• Conflict between quantitative and qualitative
approaches to HRP

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 Recruitment
• Recruitment involves attracting and obtaining
as many applications as possible from eligible
job seekers

• The process of finding and / or attracting

applicants for the employer’s open positions

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 More about Recruitment
• The first contact that a company makes with potential
employees

• Through recruitment, many individuals will come to know

about a company and decide whether they wish to work for it

• The recruitment process should inform qualified individuals

about employment opportunities, create a positive image of
the company, provide enough information about the jobs so
that applicants can make comparisons with their qualifications
and interests, and generate enthusiasm among the best
candidates so that they will apply for the vacant positions.

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 How is Recruitment an Advantage to
the Firm?
• An effective approach to recruitment can help
a company successfully compete for limited
human resources

• The firm must choose a recruiting approach

that produces the best pool of candidates
quickly and cost effectively.

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 Significance of Recruitment
• Determine the present and future requirements of the
firm
• Increase the pool of job candidates at minimum cost
• Help increase the success rate of the selection process
by reducing the number of visibly underqualified or
overqualified job applicants
• Attract highly qualified and competent people
• Ensure that the selected candidates stay longer with
the company
• Make sure that there is mach between cost and benefit

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 Factors Affecting Recruitment

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 Recruitment Process

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 Recruitment Planning
• This involves the translation of likely job vacancies and
information about the nature of these jobs into a set of
objectives or targets that specify the number and type
of applicants to be contacted.

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 Contd.
• Number of Contacts – Estimate the number of
applicants necessary to fill all vacancies with
qualified people

• Type of Contacts – The type of people to be

informed about job openings. This depends on
the tasks and responsibilities involved and the
qualifications and experience expected.
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 Recruiting Yield Pyramid
• Yield ratios express the relationship of applicant inputs to
outputs at various decision points

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 Step 2 – Strategy Development
• To be considered whether to
– ‘make’ or ‘buy’ employees
– Technological sophistication of recruitment
and selection devices
– Geographic distribution of labour markets
comprising job seekers (Where to look)
– Sources of recruitment (How to look)
– Sequencing the activities in the recruitment
process
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 Sources of Recruitment
Internal Sources External Sources
Present Employees Professional Associations
Employee Referrals Advertisements
Former Employees Employment Exchanges
Previous Applicants Campus Recruitment
Consultants, Contractors
E recruiting, Competitors
Walk ins
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 Step 3 - Searching
• It involves 2 steps:
– Source Activation
– Selling

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 Step 4 - Screening
• The selection process will begin after the applications are
scrutinised and shortlisted.

• The purpose of screening is to remove from the recruitment

process those applicants who are unqualified for the job.

• Effective screening can save a great deal of time and

money.

• Care to be taken to not lose good employees!

• Reference checks may also be used while screening.

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 Step 5 – Evaluation and Control
• Necessary as numerous costs are incurred in the
recruitment process

• Costs incurred are:

– Salaries for recruiters
– Management and professional time spent on
preparing JD, JS, ads, etc
– Administrative expenses

• Check whether recruitment methods are valid

and the recruitment process is effective.
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 Topics in Selection
• Meaning or definition of selection

• Selection process

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 Selection

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