Unit - 2

Acquisition of Human Resource

2.1 Human Resource Planning – Quantitative and Qualitative dimensions

Human resources undoubtedly play the most important part in the functioning of an organization. The term ‘resource’ or ‘hu­man resource’ signifies potentials, abilities, capacities, and skills, which can be developed through continuous interaction in an organizational setting.

The interactions, interrelationships, and activities performed all contribute in some way or other to the development of human potential. Organizational productivity, growth of companies, and economic development are to a large extent contingent upon the effective utilization of human capa­cities.

Definition

E.W. Vetter viewed human resource planning as “a process by which an organization should move from its current manpower position to its desired manpower position. Through planning, management strives to have the right number and right kind of people at the right places at the right time, doing things which result in both the organization and the individual receiving maximum long-run benefit.”

According to Leon C. Megginson human resource planning is “an integrated 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 organizational objectives and satisfy the individual needs and goals of organizational members.”

Human resources have a dual role to play in the economic development of a country. On one hand they are the consumers of the products and services produced by the organizations while on the other hand they are one of the factors of production.

Along with capital and other factors of production, human resources can lead to increase in production and economic development. The rate of growth of human resources is determined by two aspects quantitative and qualitative.

Variables Determining the Quantity of Human Resources:

1. Population Policy:

Some population policies operate by influencing the factors responsible for growth such as fertility, marriage and mortality. These are known as population influencing policies. Another category of policies known as responsive policies are implemented to adjust to observed population trends with the help of programmes like health, nutrition, education, housing, etc. The aim of population policies is to achieve an optimum population for enhancing the country’s development.

2. Population Structure:

The structure or composition of the population is determined by two factors, sex composition and age composition.

(i) Sex Composition:

Sex ratio is the ratio of males to females in the population. It is the basic measure of the sex composition of the population of any area. Higher the number of females, higher will be the population growth rate in future.

(ii) Age Composition:

It is the distribution of population by age groups. Age composition is the result of past trends in fertility and mortality. The supply of labour depends on age composition as economically active population falls in range of 15-65 age groups.

3. Migration:

Net migration is another factor which causes changes in the population. Age and sex composition determine the natural growth in population, but for calculating the overall changes in population it is important to consider net migration also.

Net migration = total immigrants – total emigrants

A positive net migration will lead to a rise in population growth rate while negative net migration will reduce the growth rate of population. Migration can be both inter­regional and international.

4. Labour Force Participation:

The population of any country consists of workers and non-workers. The workers are the people, usually in age group of 15-65, who participate in economically productive activities by their mental or physical presence.

These include:

i. Employers,

Ii. Employees,

Iii. Self-employed persons, and

Iv. Those engaged in family enterprises without pay.

The others in the population are the non-workers such as students, infants, elderly, beggars, retired people, inmates of jail or mental institutions, unemployed, etc. They do not contribute to any productive economic activity. It is the changes in the working population which affect the growth of human resources. The number of people who are unemployed but available for work also impacts the availability of labour.

Qualitative Aspects of Human Resource Planning:

The quantitative dimensions help to ascertain human resources in numbers while the productive power of human resources is assessed by the qualitative dimensions. For example, there may be hundreds of applicants for 20 vacancies, but out of these only a few may meet the quality standards required for the job.

Factors which determine the quality of human resources are:

1. Education and Training:

The quantity and quality of education and training received by human resources impacts their knowledge and skills. Education and training are important for the upliftment of both individual and society. It can be of two types, formal and informal.

Formal education is imparted through schools and colleges while informal education and training takes place through on-the-job training methods. Formal education stresses the transfer of theoretical knowledge, while informal education emphasizes on practical application of knowledge.

2. Health and Nutrition:

Health and nutrition along with education are vital for Human Resource Development. Health and nutrition impact the quality of life, productivity of labour and the average life expectancy.

Health status is determined by:

(i) Purchasing power of people.

(ii) Public sanitation, climate and availability of medical facilities.

(iii) People’s understanding and knowledge of health, hygiene and nutrition.

3. Equality of Opportunity:

Not all segments of people comprising human resources get equal employment opportunities. There is bound to be some discrimination.

The most common forms of discrimination are:

(i) Social discrimination – Discrimination on basis of gender, religion or social standing.

(ii) Economic discrimination – Discrimination based on financial positions or possession of wealth by the sections of workforce.

(iii) Regional discrimination – These are in form of discrimination between rural and urban population or between people belonging to different regions/ states.

Discrimination affects the quality and productivity of the human resources belonging to different sections of the population. The privileged classes get access to best education, nutrition and health facilities while underprivileged are deprived of their right share in the development process. For the overall, well-rounded development of the country’s human resources, effective policies need to be implemented to deal with the problem of discrimination.

Key takeaways

Human resource planning (HRP) is the continuous process of systematic planning ahead to achieve optimum use of an organization's most valuable asset—quality employees.

2.2 Job analysis – job description and job specification

A job may be defined as a sum total of tasks, duties and responsibilities which is assigned to individual employees.

After definition of job, FIR manager needs to undertake job analysis. Job Analysis is the starting point of recruitment and selection. It is a systematic process of collecting and studying information about the various jobs in the organization.

Edwin Flippo defines "lob analysis is the process of studying and collecting information relating to the operations and responsibilities of a specific job,"

Job analysis consists of two areas:

1. Job Description
2. Job Specification

I. Job Description

Job description gives details of the job in respect of job title, duties and responsibilities, location of the job, working conditions, and other relevant details describing the job. It is an overall summary of job requirements.

According to Edwin Flippo "a job description is an organized, Tactual statement of duties and responsibilities of a specific job. In wne, it should tell what is to be done, how it is done and why. It is a standard of function, in that it defines the appropriate and authorized content of a job."

The job description describes every aspect of the job. Job description once prepared is reviewed periodically and revised in the light of changing conditions.

Contents of Job Description:

1. Job identification:

It gives details relating to the job title, code number of the occupation, location, name of the division/department, location and the unit where the job exists. This part of job analysis helps to identify the job and to provide designation to job holder.

2. Job Summary:

It gives brief details of the job contents in terms of tasks or activities to be performed. Also, brief details are stated relating to the hazards and discomforts relating to the job.

3. Duties and Responsibilities:

It indicates the duties to be performed-what, how and why of a job. It also describes job responsibilities relating to custody of valuables and records, supervision and training of subordinates, and other responsibilities towards effective performance of the job.

4. Relationship with Other Jobs:

It indicates internal (within the organization) relationship of the job with other jobs that are horizontal, vertical and diagonal. It also indicates external relationship such as relationship with customers, dealers, Government officials, trade associations, etc.

5. Machines and Tools:

It states the type of machines, tools and equipment’s that are to be used for the performing the job activities, Therefore, candidates who can handle the machines and tools properly are considered for selection.

6. Supervision:

It indicates the extent of supervision which the job is subject to from higher levels, and the extent of supervisions which the job holder has to exercise over subordinates. Designations of immediate superior and subordinates may also be stated.

7. Social Environment:

The social environment prevailing in the organization may be stated in the job description. Such description enables to job holder to adjust with the social environment at the work place

8. Working Conditions:

The working conditions are also a part of the job description. The working conditions include:

1. Health hazards such as ventilation, illumination, nerve strain, eye strain, noise, heat, dust and other occupational hazards.
2. Location such as factory/office, inside/outside, solitary team oriented, underground/on-ground, etc.
3. Posture such as standing, sitting, lifting, walking, stopping etc.
4. Rest Period such as the number of rest periods, and the duration of each rest periods or breaks.
5. Speed of work such as fast or moderate or slow.
6. Timings such as single shift, rotational shift, day, night, overtime, peak loads, etc.

Uses of Job Description:

1. It facilitates job grading and classification.
2. It provides the base for preparing job specification, thus facilitating recruitment and selection.
3. It enables the newly appointed candidate's decision to accept or reject the job.
4. It ensures proper orientation to the newly selected employees.
5. It enables proper placement of employees on the job.
6. It facilities proper performance appraisal.
7. It enables promotion and transfer of employees.
8. It enables employees to adopt health and safety measures.
9. It helps to develop work procedures.
10. It assists in career planning and development of employees.
11. It facilitates employee counselling and guidance.
12. It enables the organization to design compensation and incentive plans.
13. It helps to develop effective training and development programmes.
14. It helps to avoid or minimize accidents.
15. It helps to reduce employee grievances.

II. Job Specification

It gives details of the candidate who is supposed to do a particular job with reference to qualities, qualifications, experience, gender, family background, etc. It is an overall written summary of employee requirements.

Job specification provides a standard of an employee for possessing the required qualities and qualities to perform the job efficiently and effectively.

Edwin Flippo defines "job specification is a statement of the minimum acceptable human qualities necessary to perform a job properly."

Contents of Job Specification

1. Mental Characteristics - includes general intelligence, aptitude. Mental alertness, ability to concentrate, analytical reasoning, logical reasoning, creativity and innovativeness, etc.
2. Personal Characteristics-includes age, gender, education, work experience, leadership qualities, pleasing personality and manners, communication skills, dispute solving skills, technical skills, conceptual skills, etc.
3. Physical Characteristics - includes height, health, hearing, vision, voice, poise, motor coordination, physical stamina, etc.
4. Social and Psychological Characteristics - includes emotional stability, cooperativeness, human skills, conversational skills, social relations, introvert/ extrovert, social citizenship behaviour, etc.

The elements included in job specifications differ from organization to organization, and from job to job. However, elements like age, gender, education, health, experience, and skills are invariably included in job specification for all types of jobs in all organizations.

Essential and Desirable Elements:

Experts broadly divide the elements of job specification in two groups:

1. Essential characteristics which are generally mandatory in nature, such as the minimum and maximum age of the job applicant, minimum qualifications (especially in public/Govt. i organizations), and height and weight (military). There is no flexibility in modifying such characteristics.
2. Desirable characteristics which are generally flexible in nature, such as experience, family background, and gender. The desirable characteristics are flexible in nature. However, such characteristics are desirable for satisfactory performance of the job.

Uses of Job Specification:

1. It facilitates selection of the employees depending on the mental, physical, and personal qualities.
2. It helps in providing training to improve the knowledge and skills of those candidates who lack the same for effective performance of the job.
3. It enables the organization to design compensation plans based
4. On qualifications and experience of the candidates.
5. It helps in proper placement of the candidates on the job depending upon the qualities and qualifications.
6. It enables the organization to provide proper designation to the employees based on their qualifications and experience.
7. It facilitates in counselling the employees to acquire higher qualifications, thus facilitating career planning and succession planning.

2.3 Recruitment – concept and sources

Whenever there's a vacancy in the organization, generally it's to be filled. To make the candidate available for filling those vacancies, their selection procedure and placement on a proper job comes under the purview of recruitment.

As soon as the available vacancies are known, they're advertised through different media and accordingly the applications are collected for the vacant posts. a group of candidates curious about doing the job and are eligible to do, it's created through recruitment.

It is an operative function of human resource management coming under the managerial function called organizing. Within the words of Edwin Flippo, ‘recruitment is the process of searching for prospective employees and stimulating them to apply for jobs within the organization’.

In short, it involves attracting and obtaining as many applications as possible from eligible job seekers.

Recruitment is a core function of human resource management. Recruitment is a process of identifying, screening, short listing and hiring potential resource for filling up the vacant positions in an organization.

Recruitment is the process of choosing the right person at the right time for the right position. Recruitment refers to meet the organization’s resource requirements through selecting and appointing potential candidates.

Recruitment process

Recruitment process is the first step in creating powerful resource base. The process starts from sourcing the resources and conducting interviews and finally selecting the right candidates.

1. Recruitment planning – the first step in recruitment process is recruitment planning. In this process the vacant position is analyzed and described. It includes job specifications and its nature, experience, qualifications and skills required for the job, etc. the recruitment plan includes the following –
   1. Identifying vacancy – this process involves HR department receiving the requisition for recruitments from different department of the organization, which contains
      • Number of posts to be filled
      • Number of positions
      • Duties and responsibilities to be performed
      • Qualification and experience required

Before commencing recruitment, these parameters should be evaluated which leads to hiring of the right resource for the team and the organization

b.     Job analysis - Job analysis is a process of identifying, analyzing, and determining the duties, responsibilities, skills, abilities, and work environment of a specific job. Job analysis involves job descriptions and job specifications.

Job description - Job description provides information about the scope of job roles, responsibilities and the positioning of the job in the organization. Job description provide information on the following element –

• Job Title / Job Identification / Organization Position
• Job Location
• Summary of Job
• Job Duties
• Machines, Materials and Equipment
• Process of Supervision
• Working Conditions
• Health Hazards

Job specification - Job specification focuses on the specifications of the candidate, whom the HR team is going to hire.

Job specification includes the following element

• Qualification
• Experiences
• Training and development
• Skills requirements
• Work responsibilities
• Emotional characteristics
• Planning of career

c.      Job evaluation – this is the analysis done to determine the value or worth of a job in relation to the other jobs in an organization.

2.     Recruitment strategy –

In this step strategy is prepared for hiring the resources. After completing job specification and description, the next step is to decide the strategy for recruiting the potential candidates for the organization. The steps involved in developing a recruitment strategy include:

• Setting up a board team
• Analyzing HR strategy
• Collection of available data
• Analyzing the collected data
• Setting the recruitment strategy

3.     Searching the right candidates –

After deciding the strategy, the next step is to search the resources depending upon the requirement of the job. The resources are sourced internally and externally.

Internal sources include hiring employees within the organization through

• Promotions
• Transfers
• Former Employees
• Internal Advertisements (Job Posting)
• Employee Referrals
• Previous Applicants

External sources refer to hiring employees outside the organization through

• Direct Recruitment
• Employment Exchanges
• Employment Agencies
• Advertisements
• Professional Associations
• Campus Recruitment
• Word of Mouth

4.     Screening / short listing

After completion of sourcing of candidates, screening starts. Screening is the process of filtering the applications of the candidates for further selection process. The screening process of recruitment consists of three steps:

1. Reviewing of Resumes and Cover Letters – in this process resume of candidates are checked and reviewed with the requirement of the job
2. Conducting Telephonic or Video Interview - after the resumes are selected as per the job requirements, the candidates are contacted through phone or video by the hiring manager.
3. Identifying the top candidates – in this process the hiring manager shortlist the top resumes to take a decision.

5.     Evaluation and control –

The last stage in the process of recruitment is evaluation and control. Recruitment is a costly process. Thus, the performance of the recruitment process is thoroughly evaluated.

These include the following:

• Salaries to the Recruiters
• Advertisements cost and other costs incurred in recruitment methods, i.e., agency fees.
• Administrative expenses and Recruitment overheads
• Overtime and Outstanding costs, while the vacancies remain unfilled
• Cost incurred in recruiting suitable candidates for the final selection process
• Time spent by the Management and the Professionals in preparing job description, job specifications, and conducting interviews.

Sources of Recruitment:

The eligible and suitable candidates required for a specific job are available through various sources. These sources are often divided into two categories, internal and external sources. 

Internal Sources of Recruitment:

1. Promotions:

The promotion policy is followed as a motivational technique for the workers who work hard and show good performance. Promotion leads to enhancements in pay, position, responsibility and authority. The important requirement for implementation of the promotion policy is that the terms, conditions, rules and regulations should be well-defined.

2. Retirements:

The retired employees could also be given the extension in their service in case of non-availability of suitable candidates for the post.

3. Former employees:

Former employees who had performed well during their tenure may be called back, and better wages and incentives can be paid to them.

4. Transfer:

Employees could also be transferred from one department to a different wherever the post becomes vacant.

5. Internal advertisement:

The existing employees could also be curious about taking over the vacant jobs. As they're working within the company since while, they realize the specification and outline of the vacant job. For his or her benefit, the advertisement within the corporate is circulated in order that the workers are going to be intimated.

Benefits of Internal Sources of Recruitment:

1. The prevailing employees get motivated.

2. Cost is saved as there's no got to give advertisements about the vacancy.

3. It builds loyalty among employees towards the organization.

4. Training cost is saved because the employees already realize the character of job to be performed.

5. It's a reliable and straightforward process.

Limitations of Internal Sources of Recruitment:

1. Children with the knowledge of modem technology and innovative ideas don't get the prospect.

2. The performance of the prevailing employees might not be as efficient as before.

3. It brings the morale down of employees who don't get promotion or selected.

4. It's going to results in encouragement to favouritism.

5. It's going to not be always within the good interest of the organization.

External Sources of Recruitment:

1. Press advertisement:

A wide choice for choosing the acceptable candidate for the post is available through this source. It gives publicity to the vacant posts and therefore the details about the work within the sort of description and job specification are made available to public generally.

2. Campus interviews:

It is the simplest possible method for companies to pick students from various educational institutions. It's easy and economical. The corporate officials personally visit various institutes and choose students eligible for a specific post through interviews. Students get an honest opportunity to prove them and obtain selected for an honest job.

3. Placement agencies:

A databank of candidates is shipped to organizations for his or her selection purpose and agencies get commission reciprocally.

4. Employment exchange:

People register themselves with government employment exchanges with their personal details. Consistent with the requirements and request of the organization, the candidates are sent for interviews.

5. Enter interviews:

These interviews are declared by companies on the precise day and time and conducted for selection.

6. E-recruitment:

Various sites like jobs.com, naukri.com, and monster.com are the available electronic sites on which candidates upload their resume and seek the roles.

7. Competitors:

By offering better terms and conditions of service, the human resource managers attempt to get the workers working within the competitor’s organization.

Benefits of External Sources of Recruitment:

1. New talents get the chance.

2. The simplest selection is feasible as an outsized number of candidates apply for the work.

3. Just in case of unavailability of suitable candidates within the organization, it's better to pick them from outside sources.

Limitations of External Sources of Recruitment:

1. Skilled and impressive employees may switch the work more frequently.

2. It gives a way of insecurity among the prevailing candidates.

3. It increases the value as advertisement is to tend through press and training facilities to be provided for brand spanking new candidates.

Key takeaways

Recruitment is the process of choosing the right person at the right time for the right position.

2.4 Selection – Concept and process

Selection is the process of choosing right candidate for the job position in an organization. It is the process of selecting suitable candidates through interviewing the candidates and evaluating their qualities. The selection of right candidates is an asset to the organization.

Definition

“Selection of an employee is a process of choosing the applicants, who have the qualifications to fill the vacant job in an organization.”

“Selection is a process of identifying and hiring the applicants for filling the vacancies in an organization.”

“Employee selection is a process of matching organization’s requirements with the skills and the qualifications of individuals.”

Selection process and steps

1. Employment interview – it refers to one on one or face to face conversation with the applicant to know the candidate better. It helps the interview in taking right decision by discovering the inner qualities of the candidate.

2.     Checking references – in this process applicant provide references which helps in verifying the applicant’s qualifications and experiences. The interviewer does reference check to understand the attitude, and the behavior of the candidate as an individual and also as a professional.

3.     Medical examination – under medical examination, applicants physical and the mental fitness are checked.  This ensures that the candidate is capable of performing a job or not. It also helps in picking a right candidate who are physically and mentally fit.

4.     Final selection – under this process, applicant is issued an appointment letter which proves that the applicant has qualified in all the rounds of the selection process.

Key takeaways

Selection is the process of choosing right candidate for the job position in an organization

References:

1. Gary Dessler. A Framework for Human Resource Management. Pearson
2. DeCenzo, D.A. And S.P. Robbins, “Personnel/Human Resource Management”, Prentice Hall of India, New Delhi.
3. Bohlendar and Snell, Principals of Human Resource Management, Cengage Learning.
4. Chhabra, T.N. Essentials of Human Resource Management. Sun India Publication, New Delhi.