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Human Resource Management

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Human Resource Management (MGT501)
Lesson 16
After studying this chapter, students should be able to understand the following concepts:
A. Human Resource Planning
B. Human Resource Forecasting Techniques
C. HR Hiring Process
D. Constraints of Recruitment Process
E. Philosophy of the Recruitment
F. Ethical Issues in Recruitment
Today we will examine the human resource planning process and some human resource forecasting
techniques. Next, we discuss forecasting human resource requirements and availability and describe what
actions could be taken should either a surplus or a shortage of workers exist.
A. Human resource planning (HRP):
It is the process of systematically reviewing human resource requirements to ensure that the required
number of employees, with the required skills, is available when they are needed.
Several techniques of forecasting human resource requirements and availability are currently used by those
in the profession.
 Zero Based Forecasting
This method uses the organization's current level of employment as the starting point for determining
future staffing needs. The key to zero-base forecasting is a thorough analysis of human resource needs.
 Bottom-Up Approach
A forecasting method in which each successive level of the organization, starting with the lowest, forecasts
its employee requirements in order to, ultimately, provide an aggregate forecast of employment needs.
 Use Of Mathematical Models
Mathematical models can assist in forecasting HR requirements. The relationship between sales demand and
the number of employees needed is a positive one.
Simulation is a technique for experimenting with a real-world situation through a mathematical model
representing that situation. A model is an abstraction of the real world.
Forecasting Human Resource Requirements
A requirements forecast is an estimate of the numbers and kinds of employees the organization will need at
future dates in order to realize its goals.
Forecasting Human Resource Availability
Determining whether the firm will be able to secure employees with the necessary skills and from what
sources these individuals may be obtained is called an availability forecast.
When a comparison of requirements and availability indicates a worker surplus will result, restricted hiring,
reduced hours, early retirements, or layoffs may be required to correct the situation.
 Restricted Hiring
When a firm implements a restricted hiring policy, it reduces the workforce by not replacing employees who
Human Resource Management (MGT501)
 Reduced Hours
Reaction to a declining demand can also be made by reducing the total number of hours worked. Instead of
continuing a 40-hour week, management may decide to cut each employee's time to 30 hours.
 Early Retirement
Early retirement of some present employees is another means of reducing the supply of workers.
At times, the firm has no choice but to actually lay off part of its workforce.
Unemployment in the United States was at an all-time low in the summer of 2000. Faced with a shortage of
workers, many organizations had to intensify their efforts to recruit the necessary people to meet the needs
of the firm. Some actions that were taken included:
 Creative Recruiting
A shortage of personnel often means that new approaches to recruiting must be used. The organization may
have to recruit in different geographical areas than in the past, explore new methods, and seek different
kinds of candidates.
 Compensation Incentives
Firms competing for workers in a high-demand situation may have to rely on compensation incentives.
Premium pay is one obvious method. However, this approach may trigger a bidding war that the
organization cannot sustain for an extended period. More subtle forms of rewards may be required to
attract employees to a firm, such as four-day workweeks, flexible working hours, telecommuting, part-time
employment, and child care centers.
 Training Programs
Special training programs may be needed to prepare previously unemployable individuals for positions with
a firm. Remedial education and skills training are two types of programs that may help attract individuals to
a particular company.
 Different Selection Standards
Another approach for dealing with shortages of workers is the lowering of employment standards. Selection
criteria that screen out certain workers may have to be altered to ensure that enough people are available to
fill jobs. For instance, instead of desiring extensive work experience, a firm may be willing to hire an
inexperienced worker and train him or her to do the job.
Succession Planning: The process of ensuring that a qualified person is available to assume a managerial
position once the position is vacant.
Succession Development: It is the process of determining a comprehensive job profile of the key
positions and then ensuring that key prospects are properly developed to match these qualifications.
C. HR Hiring Process:
HR hiring process involves the activities that are required to make the workforce or staff available to fill and
keep filled different positions in the organization.
This process includes the following steps
It is the process of attracting individuals on a timely basis, in sufficient numbers and with appropriate
qualifications, and encouraging them to apply for jobs with an organization.
Human Resource Management (MGT501)
The process of making a "hire" or "no hire" decision regarding each applicant for a job
The process of orienting new employees to the organization or the unit in which they will be working
Today we will start discussing this hiring process with the detail discussion on first step that is Recruitment.
It is the process of attracting individuals on a timely basis, in sufficient numbers and with appropriate
qualifications, and encouraging them to apply for jobs with an organization.
a. Goals of Recruitment:
Mainly there are two recruitment goals
b. To attract qualified applicants
Recruiting process is used to create the pool of qualified applicants. By qualified applicants we mea those
applicants who are having abilities that are perfect match with the job requirements.
c. To discourage non qualified applicants.
Second goal of recruitment is to avoid nonqualified applicants. When recruiting is based upon careful
designing of the job disruption and job specification most of the applicants having irrelevant qualifications
are eliminated fro the list of potential applicants which makes recruiting process more effective and easier.
D. Constraints of Recruitment Process:
Different factors in internal or external environment can influence the effectiveness of recruiting process in
negative manner and can become hurdles in recruiting process. They mainly include:
I. Image of the Organization.
If employees believe that their employer deals with them fairly, the positive word-of-mouth support they
provide is of great value to the firm. It assists in establishing credibility with prospective employees.
Image of the organization is mainly assessed by its performance, salary, benefits provided by it potential
opportunities to excel and respect etc. If all these factors are good enough than the image of the
organization will be positive in the market that will help the organization to have reasonable number of
applicants ready to apply for then given job openings, But if the salary benefits provided by the
organizations are not compatible with the market there are no potential opportunities for the career
development and to excel in future than these factors will be contributing towards negative image of the
organization. This bad image is hurdle in acquiring good number of applicants through recruitment process
specially if any firm is having business in the declining industry and management is least bothered about the
welfare and wellbeing of the employees.
II. Attractiveness of the job
Attractiveness of the job mainly depends upon its contribution towards achievement of organizations
objectives, challenging assignments, its contribution in the career development of the job holder. Secondly
the benefits and salary associated to particular job also plays important role in defining the importance of
the job. There fore jobs having challenging assignments, career oriented in nature and having good
remuneration package can attract best applicants from the labor force available in the market or vice versa.
III. Government Influence
The recruitment process is influenced by the laws provided by the government. Organizations to be more
successful are required to work according to these laws.
IV. Labor Market Influence:
The recruitment process is influenced by labor market conditions. When the economy is growing rapidly
and unemployment levels are very low, recruiting is extremely difficult. However, when the economy is
stagnant and unemployment levels are high, organizations can obtain large applicant pool with very little
Human Resource Management (MGT501)
V. Recruiting Costs
Companies use to bear very high costs while performing the recruitment process especially when the
recruitment is external. Therefore organizations can perform this function only and only if they are having
sufficient resources to perform the recruitment process.
VI. Global Issues
When ever staffing function is performed at the international level or across the national boundaries beside
internal environment of organization polices of the host country regarding employment also influence the
recruitment process. They can include basic labor laws regarding quality of work life EEO, remuneration
packages, etc.
Diversity through Recruiting Efforts:
To offset the momentum of past discrimination in employment, firms must resort to additional recruitment
approaches. A recruitment program that is designed to specifically attract women and minorities is referred
to as affirmative recruitment. To ensure that an organization's recruitment program is nondiscriminatory,
the firm must analyze its recruitment procedures. Each individual who engages in recruitment should be
trained in the use of objective, job-related standards. With few exceptions, jobs must be open to all
individuals. When placing job orders with employment agencies, an organization should emphasize its
nondiscriminatory recruitment practices. Organizations engaged in affirmative recruitment should develop
contacts with minority, women's, and other community organizations.
E. Philosophy of the Recruitment:
Major decision in performing the recruitment process is selection of sources from the available sources
which are:
Internal Recruitment
External Recruitment.
Both of theses have pros and cons and to have the best pool of the applicant's pool it is suggested that the
multiple approach should be used instead of depending upon any single sources
F. Ethical Issues in Recruitment:
 Performs recruiting and employment activities for the off-site location, providing qualified
candidates in a cost-effective and timely manner while ensuring adherence to the corporate job
posting procedure.
 Verifies that all job offers to internal and external candidates are within company policy and that
any unusual questions regarding employment are referred to the Manager in order to ensure fair
and equitable treatment of all job candidates.
Key Terms
Human resource planning (HRP): It is the process of systematically reviewing human resource
requirements to ensure that the required number of employees, with the required skills, is available when
they are needed.
Recruitment: It is the process of attracting individuals on a timely basis, in sufficient numbers and with
appropriate qualifications, and encouraging them to apply for jobs with an organization.
Job EvaluationIt is used to evaluate the importance of job by considering its contribution towards
achievements of the objectives of organization.
Table of Contents:
  1. INTRODUCTION TO HRM:Growing Importance of HRM, Road Map of the Course
  2. ESSENTIALS OF MANAGEMENT:Concepts and Essential of Management, Managerís Roles
  3. ORGANIZATION AND COMPONENTS OF ORGANIZATION:Open versus Closed Systems, The Hawthorne Studies
  4. PEOPLE AND THEIR BEHAVIOR:Why to work in organizations?, The Goals of Organizational Behavior
  5. INDIVIDUAL VS. GROUP BEHAVIOR:What Are Roles?, Problem solving Team
  6. PERSONNEL MANAGEMENT TO HUMAN RESOURCE MANAGEMENT:Records and Administration, Competitive Advantage
  7. HRM IN A CHANGING ENVIRONMENT:Productivity, New Trends at Work Place
  8. How organization Cultivate a Diverse Workforce, STEPS TOWARD MANAGEMENT OF DIVERSITY
  9. FUNCTIONS AND ENVIRONMENT OF HRM:Compensation and Benefits, Safety And Health, Interrelationships of HRM Functions
  10. LINE AND STAFF ASPECTS OF HRM:Authority, Line versus Staff Authority, Staff Manager
  11. LEGAL CONTEXT OF HR DECISIONS:Doing the Right Thing, Affirmative Action, Unintended Consequences
  12. HUMAN RESOURCE PLANNING (HRP):Benefits of HR Planning, Forecasting Human Resource Availability
  13. STRATEGIC PLANNING AND HRIS:HRís Strategic Role, Human Resource Information System, Common HRIS Functions
  14. JOB ANALYSIS:Purposes of the job Analysis, Questions Job Analysis Should Answer
  15. JOB ANALYSIS:Methods of Collecting Job Analysis Information, Observation, Source of Data
  16. JOB ANALYSIS (CONTD.):SURPLUS OF EMPLOYEES FORECASTED, Diversity through Recruiting Efforts
  17. SOURCES OF RECRUITMENT:ALTERNATIVES TO RECRUITMENT, Quantity of the Applicants, Quality of the Applicants
  18. SELECTION:Initial Screening, Advantages of Successful Screening
  19. SELECTION TESTS:Characteristics of Properly Designed Selection Tests, Guidelines for Conducting an Interview
  20. SELECTION PROCESSÖ CONTD:Background Investigations, Physical Exam, Selecting Managers
  21. SOCIALIZATION:Compensation and Benefits, Team Membership, Stages in socialization Process, Training and Development Trends
  22. TRAINING AND DEVELOPMENT:Learning, Phases of Training, Why Transfer of Training Fails
  23. MAXIMIZING LEARNING:Following up on Training, Repetition, Feedback, Purposes of T & D
  24. CAREER MANAGEMENT:Individual career planning, Career Planning and Development Methods
  25. PERFORMANCE:Determinants of Job Performance, Why is performance measured?, Performance Management
  28. COMPENSATION SYSTEM:Pay, Job Pricing, Compensation: An Overview, Compensation Surveys
  29. BENEFITS:Total Compensation, Discretionary Benefits (Voluntary), Workplace Flexibility
  30. ROLE OF MONEY IN PERFORMANCE OF EMPLOYEES:Types of Pay-for-Performance Plans, Empower Employees
  31. MOTIVATION:The Motivation Process, Motivational Theories, Challenges of motivating employees
  32. OCCUPATION, HEALTH & SAFETY:Physical Conditions, Accident Investigation, Smoking in The work place
  33. STRESS MANAGEMENT:Symptoms of Stress, Managing Stress,
  34. COMMUNICATION IN ORGANIZATION:Burnout, Social Support at Work & Home, Communication in organization, Meetings
  35. TRADE UNIONS:Collective Bargaining, The HRM Department in a Nonunion Setting, Phases of Labor Relations
  36. CONFLICT AND NEGOTIATION:Transitions in Conflict Thought, Individual Conflict Management Styles
  37. POWER AND POLITICS:Sources of Power, Advantages and Disadvantages of PowerPower and Politics in Context
  38. EMPLOYEE RIGHTS AND DISCIPLINE:Contractual Rights, Management Rights, Disciplining Employees,
  39. DISCIPLINE (CONT...):Factors to Consider when Disciplining, Disciplinary Guidelines, Employee Separations
  40. LEADERSHIP:The Leaderís Behavior, Situational Theories of Leadership, Becoming a Leader
  41. REVISION (LESSON 12-21):Plans, Job Specification, Human resource planning, Selection Process, Corporate Culture
  42. REVISION (LESSON 22-26):Training, Case Study Method, Training, Performance
  43. REVISION (LESSON 27-35):Classification Method, Compensation, Empowerment, Mediation
  44. INTERNATIONAL DIMENSIONS OF HRM:Global Corporation, Type of staff members, Approaches to Global Staffing
  45. CONCLUSION & REVIEW:Strategies for Gaining Competitive Advantage, High-performance Work System