Q1) Define HR planning.  Also discuss steps involved in HR planning.     2+5

A1) 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. Human resources planning ensures the best fit between employees and jobs while avoiding manpower shortages or surpluses.Human resource planning is a process via which the right candidate for the right job is ensured. For conducting any process, the foremost vital task is to develop the organizational objective to be achieved via conducting the said process.

Six steps in human resource planning are-

Figure: Steps in HR planning

1. Analyze Organizational Objectives:

The objective to be achieved in future in various fields such as production, marketing, finance, expansion and sales gives the idea about the work to be done in the organization.

2. Inventory of Present Human Resources:

From the up to date human aid information storage system, the current number of employees, their capacity, performance and potential can be analysed. To fill the various job requirements, the internal sources (i.e., employees from within the organization) and external sources (i.e., candidates from various placement agencies) can be estimated.

3. Forecasting Demand and Supply of Human Resource:

The human resources required at different positions according to their job profile are to be estimated. The available internal and external sources to fulfill those requirements are also measured. There be proper matching of job description and job specification of one particular work, and the profile of the man or woman should be suitable to it.

4. Estimating Manpower Gaps:

Comparison of human aid demand and human aid supply will furnish with the surplus or deficit of human resource. Deficit represents the number of people to be employed, whereas surplus represents termination. Extensive use of proper training and development programme can be performed to upgrade the skills of employees.

5. Formulating the Human Resource Action Plan:

The human resource plan depends on whether there is deficit or surplus in the organization. Accordingly, the plan may be finalized both for new Selection, training, interdepartmental transfer in case of deficit of termination, or voluntary retirement schemes and redeployment in case of surplus.

6. Monitoring, Control and Feedback:

It often involves implementation of the human resource action plan. Human assets are allocated according to the requirements, and inventories are up to date over a period. The plan is monitored strictly to identify the deficiencies and remove it. Comparison between the human resource plan and its authentic implementation is done to ensure the appropriate action and the availability of the required number of employees for various jobs.

Q2) Discuss the importance of HR planning.           8

A2) The importance of HR planning are discussed below-

I. Assessing Future Personnel Needs:

Whether it is surplus labour or labour shortage, it gives a picture of defective planning or absence of planning in an organization. A number of organizations, especially public sector units (PSUs) in India are facing the problem of surplus labour. It is the result of surplus labour that the companies later on offer schemes like Voluntary Retirement Scheme (VRS) to eliminate surplus staff. Thus, it is better to plan well about employees in advance. Through HRP, one can ensure the employment of proper number and type of personnel.

II. Foundation for Other HRM Functions:

HRP is the first step in all HRM functions. So, HRP provides the essential information needed for the other HRM functions like recruitment, selection, training and development, promotion, etc.

III. Coping with Change:

Changes in the business environment like competition, technology, government guidelines, global market, etc. bring changes in the nature of the job. This means changes in the demand of personnel, content of job, qualification and experience needed. HRP helps the organization in adjusting to new changes.

IV. Investment Perspective:

As a result of change in the mindset of management, investment in human resources is viewed as a better concept in the long run success of the enterprise. Human assets can increase in value as opposed to physical assets. Thus, HRP is considered important for the proper planning of future employees.

V. Expansion and Diversification Plans:

During the expansion and diversification drives, more employees at various levels are needed. Through proper HRP, an organization comes to know about the exact requirement of personnel in future plans.

VI. Employee Turnover:

Every organization suffers from the small turnover of labour, sometime or the other. This is high among young graduates in the private sector. This necessitates again doing manpower planning for further recruiting and hiring.

VII. Conformity with Government Guidelines:

In order to protect the weaker sections of the society, the Indian Government has prescribed some norms for organizations to follow. For example, reservations for SC/ST, BC, physically handicapped, ex-servicemen, etc. in the jobs. While planning for fresh candidates, HR manager takes into consideration all the Government guidelines.

VIII. International Expansion Strategies:

International expansion strategies of an organization depend upon HRP. Under International Human Resource Manage­ment (IHRM), HRP becomes more challenging. An organization may want to fill the foreign subsidiary’s key positions from its home country employees or from host-country or from a third country. All this demands very effective HRP.

Q3) Discuss about the quantitative dimension of HR planning.    5

A3) 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.

Q4) Discuss about the qualitative aspects of HR planning.      5

A4) 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 discriminationThe 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.

Q5) Write a note on job analysis.     5

A5) 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 organisation.

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:

Figure: Job specification areas

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

According to Edwin Flippo "a job description is an organised, 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 authorised content of a job."

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 iob efficiently and effectively.

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

Q6) Discuss about different contents of job description.            8

A6) The contents of job description are discussed below-

Figure: Job description content

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 organisation) 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 equipments 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:

Q7) Discuss about different contents of job specifications. Also highlight its uses in HRM.  8

A7) The contents of job specifications are discussed below-

Figure: Contents of job specifications

Some of the significant uses of job specifications are-

Q8) Write a brief note on recruitment.           5

A8) Recruitment is the process of actively seeking out, finding and hiring candidates for a specific position or job. The recruitment definition includes the entire hiring process, from inception to the individual recruit’s integration into the company. Recruitment is a positive process of searching for prospective employees and stimulating them to apply for the jobs in the organisation. When more persons apply for jobs then there will be a scope for recruiting better persons. According to Edwin B. Flippo, “It is a process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organisation.” The factors that influence recruitment are discussed below-

Figure: Factors Influencing Recruitment

The number of persons to be recruited will depend upon the size of an enterprise. A big enterprise requires more persons at regular intervals while a small undertaking employs only a few employees. A big business house will always be in touch with sources of supply and shall try to attract more and more persons for making a proper selection. It can afford to spend more amounts in locating prospective candidates. So the size of an enterprise will affect the process of recruitment.

2. Employment Conditions:

The employment conditions in an economy greatly affect recruitment process. In under-developed economies, employment opportunities are limited and there is no dearth of prospective candidates. At the same time suitable candidates may not be available because of lack of educational and technical facilities. If the availability of persons is more, then selection from large number becomes easy. On the other hand, if there is a shortage of qualified technical persons, then it will be difficult to locate suitable persons.

3. Salary Structure and Working Conditions:

The wages offered and working conditions prevailing in an enterprise greatly influence the availability of personnel. If higher wages are paid as compared to similar concerns, the enterprise will not face any difficulty in making recruitments. An organisation offering low wages can face the problem of labour turnover. The working conditions in an enterprise will determine job satisfaction of employees. An enterprise offering good working conditions like proper sanitation, lighting, ventilation, etc. would give more job satisfaction to employees and they may not leave their present job. On the other hand, if employees leave the jobs due to unsatisfactory working conditions, it will lead to fresh recruitment of new persons.

4. Rate of Growth:

The growth rate of an enterprise also affects recruitment process. An expanding concern will require regular employment of new employees. There will also be promotions of existing employees necessitating the filling up of those vacancies. A stagnant enterprise can recruit persons only when present incumbent vacates his position on retirement, etc.

Q9) Discuss about different internal sources of recruitment used by HR manager.  5

A9)  1. Promotions:

The promotion policy is followed as a motivational technique for the employees who work hard and show good performance. Promotion results in 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. Retired employee:

The retired employees may 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 higher wages and incentives can be paid to them.

4. Transfer:

Employees may be transferred from one department to another wherever the post becomes vacant.

5. Internal advertisement:

The existing employees may be interested in taking up the vacant jobs. As they are working in the company since long time, they know about the specification and description of the vacant job. For their benefit, the advertisement within the company is circulated so that the employees will be intimated.

Q10) Discuss about different external sources of recruitment of an organisation.    5

A10) 1. Press advertisement:

A wide choice for selecting the appropriate candidate for the post is avail­able through this source. It gives publicity to the vacant posts and the details about the job in the form of job description and job specification are made available to public in general.

2. Campus interviews:

It is the best possible method for companies to select students from various educational institutions. It is easy and economical. The company officials personally visit various institutes and select students eligible for a particular post through interviews. Students get a good opportunity to prove themselves and get selected for a good job.

3. Placement agencies:

A databank of candidates is sent to organizations for their selection purpose and agencies get commission in return.

4. Employment exchange:

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

5. Walk in interviews:

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

6. E-recruitment:

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

7. Competitors:

By offering better terms and conditions of service, the human resource managers try to get the employees working in the competitor’s organization.

Q11) State the merits and demerits of internal sources of recruitment.       8

A11) Benefits of Internal Sources of Recruitment:

1. The existing employees get motivated.

2. Cost is saved as there is no need to give advertisements about the vacancy.

3. It builds loyalty among employees towards the organization.

4. Training cost is saved as the employees already know about the nature of job to be performed.

5. It is a reliable and easy process.

Limitations of Internal Sources of Recruitment:

1. Young people with the knowledge of modem technology and innovative ideas do not get the chance.

2. The performance of the existing employees may not be as efficient as before.

3. It brings the morale down of employees who do not get promotion or selected.

4. It may leads to encouragement to favoritism.

5. It may not be always in the good interest of the organization.

Q12) State the benefits and limitations of external sources recruitment of an organisation. 5

A12) Benefits of External Sources of Recruitment:

1. New talents get the opportunity.

2. The best selection is possible as a large number of candidates apply for the job.

3. In case of unavailability of suitable candidates within the organization, it is better to select them from outside sources.

Limitations of External Sources of Recruitment:

1. Skilled and ambitious employees may switch the job more frequently.

2. It gives a sense of insecurity among the existing candidates.

3. It increases the cost as advertisement is to be given through press and training facilities to be provided for new candidates.

Q13) Define selection. Explain the selection process of an organisation.    12

A13) Selection is a process of choosing right person for the right job. Selection means weeding out unsuitable applicants and selecting those individuals with prerequisite qualifications and capabilities to fill the jobs in the organization. The selection process consists of a series of steps as follows:

Figure: Selection process

1. Job Analysis:

The first step in selection process is analysing the job. Job analysis consists of two parts:

Proper job analysis helps to advertise the job properly by clearly stating the duties, qualifications, experience, salary, etc. Accordingly, the right candidates may apply for the job, thus saving time and effort of the selectors.

2. Advertising the Job:

The next step is to advertise the job. The job can be advertised through various media such as newspapers, internet, etc. The right details about the job and the candidate requirements must be given in the advertisement.

3. Initial Screening:

The initial screening can be done of the applications and of the applicant. Usually, a junior executive does the screening work The executive may check on the experience, age, qualifications family background of the candidate. The candidate may be informed of salary, working conditions, etc.

4. Application Blank:

It is a company's format to obtain standard information of every candidate in respect of biographic, academic, references, work experience, etc. The application blank provides:

5. Tests:

Various tests are conducted to judge the ability and experience of the candidates. The type of tests depends upon the nature of job. An important advantage of tests is that large group of candidates can be tested at a time. The various tests are:

6. Interview:

It is face to face exchange of views, ideas and opinions between the candidate and interviewer(s). There are various types of interviews such as:

7. Reference Check:

Candidate may be asked to provide references to confirm about the applicant s past life, character and experience. Reference check helps to:

8. Medical Check:

Medical check of the candidates is undertaken to:

9. Final Interview:

Before making a job offer, the candidates may be subjected to one more oral interview to find out their interest in the job and their expectations. At this stage, salary and other perks may be negotiated.

10. Job Offer:

This is the most crucial and final step in selection process. A wrong selection of a candidate may make the company to suffer tor a good number of years. Company should make a very important decision to offer right job to the right person.