Chapter-II: HR Acquisition

The following five sub-topics will be covered

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 2.1 Human resource planning
The basis for HR planning is the organizational
strategy
Planning is an activity that can be considered as a process
Plan is a commitment to a particular course of action
believed necessary for the achievement of specific results
• HR planning is a process of analyzing and identifying
the need or and availability of human resources so
that the organization can meet its objectives for which
they are economically most suitable.
• It precedes all other HRM functions

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 Human resource planning…
Today acquiring a right person is a challenging
task but retaining the person in the organization
is more challenging one because for a skilled
person the industry is open and any organization
prefers to possess the right mix of people in the
organization to perform the organizational
tasks and improve the productivity and
profitability.

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 Human resource planning…
HRP is about forecasting an org’s. future demand
for and supply of the right type of people in the
right number
Responsible for HRP
• Top managers, line managers and HR department
are the prior responsible for HRP process.
• HR department undertakes coordinative
functions

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 Human resource planning…
HRP Process Organizational policies…

HRP

Forecasting HR Forecasting HR
needs supply
Identification of HR
gap

HR shortage
DD = SS HR surplus
No action
HR planning
Restricted hiring Early
Recruitment and
retirement
Selection will
Layoffs Downsizing
follow
 Human resource planning…
Forecasting Techniques for HR needs
• Managerial judgment method
– Managers prepare the forecast of HR needs in
their department based on past experience
– Used in smaller companies
– Adopts both top “down and bottom up”
approaches
– Guidelines are issued

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 Human resource planning…
Forecasting Techniques for HR needs
• Delphi technique
– In conventional Delphi technique, a small group designs
questionnaire about the problem under study and sent to
various experts related to the field
– useful when the problem is used primarily to assess long-
term needs of HR
• Tests in light of changing environment
• Personal profile across the country

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 Human resource planning…
•Techniques
  for forecasting HR needs
Work-study techniques
• Work-study technique is based on the volume
operation in units and man-hrs required to produce
one unit
• HR required =

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 Human resource planning…
Forecasting Techniques for HR needs
Ratio and Trend analysis
• Focus on the ratio between production/sales
level and direct operatives.
• The ratio between specific business factors
and the number of employees needed
• Employee ratio to (production, sales)

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 Forecasting Techniques….

Forecasting Techniques for HR needs

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 Human resource planning…
Human Resource Inventory/HRI
• It is cataloguing present and future potentials. The process of
preparing HR inventory involves:
– Determination of personnel
– Cataloguing of factual information
– Systematic and detailed appraisal
– Detailed study potential for development
• Skill inventory
– Employee personal data
– Skills, education, job experience, training etc
– Special achievement if any
– Salary and job history
– Potentials of the employee

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 Human resource planning…
Management inventory
Personal data
Work history
Strength and weakness
Career plan
Promotion potentials
No. and types of employees managed
Total budget managed
Any special achievement
These information are maintained by HR information system

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 Human resource planning…
HR utilization analysis
– Underutilization- HR cost
– Full utilization
– Overutilization-beneficial in short term, dysfunctional over
the long term, employee burnout
• linking employee need to organizational strategy
Time dimension of HRP
• Short-term HRP
• Medium-term HRP
• Long-term HRP
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 Human resource planning…
Barriers to HRP
Improper linkage between HRP and corporate
strategy
Type and quality of forecasting
Environmental uncertainty
Conflict between short and long term HRP
Inappropriate HRIS

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 Succession Planning
A note to Succession Planning is expected to be
prepared by the student
Consider the three elements of succession
planning in your note

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 Job Analysis

Job Analysis

Job Evaluation Job description Job specification

Selection
Compensation Criterion development
Placement
Performance appraisal
Job design
Training

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 Job Analysis
Job Analysis
Job Analysis is the process of studying and
collecting information relating to the operation
and responsibilities of a specific job.
Job Analysis holds Job description, job specification
and job evaluation-a process of determining a
relative worth of a job
The products of job analysis are: job description,
job specification
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 Job Analysis
Why job analysis?
Organizational design (building relationship)
Job description and specification
Acquisition of personnel
HR development
Job evaluation and compensation
Performance appraisal (pay, training needs…)
Safety and healthy
Employee counseling
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 Job Analysis
Methods of information collection for job analysis
Personal observation
Interviews
Log records -job holder record on log book
Critical incidents-job holder asked for incidents
Checklist
Questionnaire
Position Analysis Questionnaire (PQA)
Management position Descriptive
Questionnaire (MPDQ)
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 Job Analysis
Job Description
Written document showing job title, task, duties and
responsibilities involved in a job
Use:
Job grading and classification
Base for job specification
Acquisition and replacement of employee
Developing career path
Training and development
Setting performance standard and appraisal
Promotion and transfer

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 Job Analysis
Job specification
A statement of minimum acceptable qualities
required in a job incumbent for effective
performance of the job.
Job specification specifies various features of
the job holder.
Job specification is prepared based on the job
description.

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 Job Design
Job design is the restructuring of jobs to
improve efficiency of the business and improve
employee satisfaction.
Job design involve:
What is to be done…response
How it is to be done…tools
Why it is to be done?....purpose

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 Job Design
Characteristics of job design
Task variety ..ability to vary the task performed
Task Identity ..provide the employee sense of satisfaction in
seeing that the job has been done by him/her from beginning
to the end
Task significance ..Employee wants to have sense of
achievement
Autonomy .. involving in decision making that affect their
performance
Feedback .. Superior should provide constructive feedback
regarding employees performance

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 Job Design
Techniques for job design
Job simplification .. Broken down jobs into
subparts
Job rotation ..internal mobility
Job enlargement ..adding more tasks
Job enrichment ..increasing the
content/upgrading of responsibility, scope and
challenge in work
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 2.2 Recruitment
Recruitment
It is the process of finding and attracting capable
applicants for employment.
• It can be also stated as the process of attracting
potential job applicants from the available labor
forces.
• Recruitment process begins when new recruits
are sought and ends when the applicants are
registered
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 2.2 Recruitment…
Successful recruitment begins with proper
employment planning and forecasting
The provision of high-quality goods and services
begins with the recruitment process.
The nature of the recruitment process
is regulated and subject to employment law.
Source of recruitment
Internal recruitment
External recruitment
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 2.2 Recruitment…
Internal recruitment
The first option that organization should look for
placement is from within
Insiders know the organization, its strengths and
weaknesses, its culture and, most of all, its
people.
Promotion from within, builds motivation of
employee and sense of commitment to the
organization.
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 2.2 Recruitment…
Cheaper and quicker than advertising in
various media and interviewing “outsiders”.
Time spent in training and socialization is also
reduced.
The major forms of internal recruit include:
Promotion
Job posting
Employee referrals
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 2.2 Recruitment…
Why internal source?
Means of motivation
Improve morale of employee
Meet psychological needs through advancement
Less cost of selection
Less cost of training, induction etc.
Trade union will satisfy
Known devils are better than unknown angels
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 2.2 Recruitment…
External sources
Formal methods of external recruiting entail
searching the labor market more widely for
candidates with no previous connection to the
organization.
These methods have traditionally included in
newspaper/magazine/journal advertising, the
use of employment agencies and executive
search firms, and college recruitment.
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 2.2 Recruitment…
The recruitment Process
1. Development of a policy on recruitment and retention
2. Needs assessment to determine the current and future human
resource requirements
3.Identification, within and outside the organisation, of the potential
human resource pool
4.Job analysis and job evaluation
5. Assessment of qualifications profiles, drawn from job descriptions
6.Determination of the organization's ability to pay salaries and
benefits
7. Identification and documentation of the actual process of
recruitment

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 2.2 recruitment…
Recruitment advertisement information include:
The organization;
The job;
The person required qualifications;
Experience;
The pay and benefit offered;
The location;
The action to be taken;
Applicants may demonstrate their suitability through
application form, letter or curriculum vitae (CV)
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 2.2 Recruitment…
EXTERNAL RECRUITMENT METHODS
Advertising
Employment Agencies
Recruiters-Colleges, Universities
Internships
Executive Search Firms
Professional Associations

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 2.2 Recruitment…
Alternative to recruitment
Outsourcing
Contingent workers- part-timers, temporaries,
Professional Employer Organization (Employee
Leasing)
Overtime

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 2.3 Selection
Selection is a process conceptualized as
choosing the fit candidates to the
organization
It also defined as the process differentiating
between applicants in order to identify and
hire those with a greater likelihood of success
in a job.

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 2.3 Selection…
Difference between recruitment and selection
Objective-to attract vs. to choose
Process-positive vs. Negative
Techniques-less specialized vs. Specialized
Outcome- applicant pool vs. Few selected
The need for scientific selection
1. Reduce margin error

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 2.3 Selection…
The major factors which determine the
selection process are:
Types of personnel
Recruitment source
No. of candidates
Organization selection policy

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 2.3 Selection…
Characteristics of Properly Designed Selection Tests
1. Standardization: Refers to the uniformity of the
procedures and conditions related to administering
tests.
2. Objectivity: Achieved when all individuals scoring
a given test obtain the same results
3. Norms-compared to the norms
4. Reliability-consistency
5. Validity-what it suppose to measure
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 2.3 Selection…
Types of interview
1. Structured interview-Uniformity in interview is its positive
aspects
2 unstructured interview- is an interview where probing, open-
ended questions are asked
3 Depth Interview
involves questions in key areas which the interviewers have
studied in advance.
4. Stress interview: The basic objective of stress interview is to find
out how the candidate behaves in stressful situation. For instance
criticizing the answer of candidates, interrupting frequently

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 2.3 Selection…
Barriers to effective selection
1.Ineffective recruitment: If the recruiter fails to
attract qualified candidates
2. Perception: Our inability to understand others
accurately is probably the most fundamental
barrier to selecting right candidate
3. Pressure: Pressure on the selectors by internals,
externals, relatives, friends etc.to select particular
candidate.
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 2.3 Selection…
4. Stereotyping: this is one of the most common barriers to
selection. In stereotyping, we generally categorize the
candidates as:
All females are sincere and honest
All civil servants are boring
5. Quota system: quota system influences effective selection
6. Nepotism/Favoritism: is barriers to effective selection in
both public and private sectors
7. Cost and time: sometimes due to insufficient time and
budget, right person cannot be selected

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 2.4 Socialization…
• Socialization is the art of introducing the new
employee with the organization

Reduce an anxiety that new employees may

The initial T&D effort designed for employees is

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 2.4 Socialization…
Purpose of Socialization
• Socialization formats are unique to each firm.
However, some basic purposes include
emphasizing these areas: the employment
situation (job, department, and company),
company policies and rules, compensation
and benefits, corporate culture, team
membership, employee development

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 2.4 Socialization…
Purpose of Socialization
Company Policies and Rules
• Every job within an organization must be performed
considering the guidelines and constraints provided by policies
and rules. Employees must have an understanding of these to
permit a smooth transition to the workplace.
Compensation and Benefits
• Employees will have a special interest in obtaining information
about the reward system. Although this information is usually
provided during the recruitment and selection process, a
review of the data is appropriate during Socialization
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 2.4 Socialization…
Purpose of socialization
Corporate Culture
• The firm’s culture reflects, in effect, the things around.
This relates to everything from the way employees dress
to the way they talk.
Team Membership
• A new employee’s ability and willingness to work in
teams is most likely determined before he or she is hired.
• In Socialization, the importance of becoming a valued
member of the company team may be emphasized.

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 2.4 Socialization…
Purpose of Socialization
Employee Development
• Employees should know exactly what is expected of
them and what is required by the firm for
advancement
Dealing With Change
• Employees at all levels must learn to effectively deal
with change in order to survive in their jobs. The best
way individuals can be prepared for change is to
continually develop and expand their skills.
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 2.4 Socialization
Stages in socialization
Pre-arrival Stage
Each individual arrives with a set of organizational values,
attitudes, and expectations
Encounter Stage
• Reaffirmation of the perceptions generated earlier
• Detach them from their previous assumption and replace it with
the organization’s pivotal standards and realities.
Metamorphosis Stage
• Positive effect on a new employees productivity and the
employee’s commitment to the organization

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