Human resource planning:

Process of determining an organization’s human resource needs. Human resources

planning are a process that identifies current and future human resources needs for
an organization to achieve its goals. Human resources planning should serve as a
link between human resources management and the overall strategic plan of an
organization.

 Mission statement:
A statement of the organizations purposes what it wants to accomplish in the
larger environment. It is used to achieve vision statement by doing some
efforts in short term. It shows the desire and objectives.

 SWOT Analysis:
An overall evaluation of the company’s strengths (S), weaknesses (W),
opportunities (O), and threats (T).

 HRIS:
A computerized system that assists in the processing of HRM information.
The HRIS is a database system that keeps important information about
employees in a central and accessible location. When such information is
required, the data can be regained and used to facilitate employment
planning decisions.
Replacement Charts:
HRM organizational charts indicating positions that may become vacant in the near
future and the individuals who may fill the vacancies. Replacement charts are a
forecasting technique used in succession planning to help companies visualize key
job roles, current employees and existing and future vacancies. Positions are
mapped alongside information such as potential replacements, gender and
promotion potential.

Matching Labor demand and supply:

The point at which the demand of the labor is equal to the supply of the labor is
called Matching labor demand and supply. This point is called efficiency point. At
this point the requirement of the employee is equal to the existing employee.

Steps:
1. Define organizational mission:
The first step is to define the goals of an organization in a specific time
period and you have to clear in your mind that what organization wants to
achieve.

2. Establish Corporate goals/objectives:

You have to establish corporate goals and objectives because if mission
statement changes then goals and objectives also change.
 3. Access current human resource:
It is the analysis of human resource how many employees are available to
perform the task.

4. Compare demand and supply:

In this step we have to compare the demand of labor and supply of human
resource and we have to check the result if demand is equal to supply then
we do not need any action. If demand is not equal to supply then we have
two cases:
a. Demand exceed supply:
If the demand of labor exceeds from supply of human resource then
we did the recruitment process for balancing them.

b. Supply exceed demand:

If the supply of human resource exceed from demand of labor then we
did the decruitment process to make them equal.

Job Analysis:
Activity that provides information about jobs currently being done and the
knowledge, skills, and abilities that individuals need to perform the jobs effectively
is called Job Analysis.
 What activities to be performed?
 What are the priorities of activities?
 Knowledge, skills, abilities required to perform the job.

Job Analysis Methods:

1. Observational Method:
A job analysis technique in which data are collected by watching employees
work. When different jobs are performed by the employee then we observe
the employee for the analysis of job and we collect first hand data.
2. Individual interview method:
Meeting with an employee to determine what his job needs. It is the one to
one question answer session in different ways and we collect personal
information. Personal interaction occurs without informing you and the
interviewer collect the data.

3. Group Interview Method:

Meeting with a number of employees to collectively determine what their
jobs need. In this method employees are divided in number of groups and
data varies in group interview.
 4. Structured Questioner Method:
A specifically designed questionnaire on which employee’s rate tasks they
perform in their jobs. The structured questionnaire method gives workers a
specifically designed questionnaire on which they check or rate items they
perform in their job from a long list of possible task items. This technique is
excellent for gathering information about jobs.

5. Technical Conference Method:

A job analysis technique that involves general input from the employee’s
supervisor. In this technique all officers, supervisor and all technically sound
person are invited to check the feedback about the subordinates of the
organization. In this management higher level management peoples are
involved in it.

6. Diary Method:
A job analysis method requiring job officials to record their daily activities.
It is considered as the oldest method. In this method the important
information of the organization are noted on diary to meet the future
requirement.

Purpose of Job Analysis:

1. Job Description:
A statement indicating what a job entails is called Job Description. In job
description we divide our job into smaller parts to define the responsibilities
of the employee to perform the task.
 Job title
 Job identification
 Job duties or functions
 Job specification

2. Job specification:
The personal qualifications necessary to perform the duties including
specific skills, education, certification, and physical abilities is called job
specification. All the things that are related to person are job specification. It
means to set the standard of the job and to define the criteria.

3. Job Evaluation:
It specifies the relative value of each job in the organization. Information is
required for evaluation. Comparison of actual performance and standard
performance is called job evaluation.
 4. Job Design:
Job design refers to the way that the position and the tasks within that
position are organized. It describes:
 What tasks are included?
 How and when the tasks are done.
 Any factors that affect the work.
 In what order the tasks are completed.
 The conditions under which the tasks are completed.

5. Job Enrichment:
Expanding job content to create more opportunities for job satisfaction is
called Job Enrichment. It means to add something in the job and reduces
something from the job. Areas of interest activities are included in the job to
give the level of comfort to the employee.
 Skills variety
 Task identity
 Task significance
 Autonomy
 Feedback from the job itself

Recruitment

Recruiting:
The process of seeking sources for job candidates is called Recruiting.

Recruiter:
Represents employer to prospective applicants at colleges and job fairs. It is the
person who performs the different recruitment activities.

Screening:
Screening is usually carried through processing the application blanks and
preliminary interviews. Each application or job letter is thoroughly examined in the
light of job to determine the suitability of candidate. Preliminary interview helps in
filtering out the correct persons.

Constraints in Recruitment:
 Organizational image:
 Organizational image is consider as a goodwill of the organization and if the
organizational image is poor in the mind of outsider then competent
applicant cannot apply in that organization because of bad organization
image. Similarly, if the image of organization is good in the mind of outsider
then qualified pool of candidate want to join that organization.

 Job Attractiveness:
If the position to be filled is difficult, distasteful, or unattractive, recruiting a
large and qualified pool of applicants will be difficult. So, to hire a right
employee you have to give some monetary packages and facilities to create
attractiveness in your job.

 Monetary benefits create attractiveness

 Holidays offers
 Offers the job in the relevant filed
 Facilities

 Internal Organization Policies:

Internal organizational policies, such as “promote from within wherever
possible,” may give priority to individuals inside the organization. Such
policies, when followed, typically ensure that all positions, other than the
lowest-level entry positions, will be filled from within the ranks. Although
this looks good once one is hired, it may reduce the number of applications.

 Government Influences:
Government policies will also affect the recruitment process because if the
government put ban on recruitment process then we cannot do any
recruitment activities.

 Recruitment Cost:
Recruitment cost can also create problem in recruiting process because when
we are going in recruitment process then we have to bear lot of cost for it.
We have to bear the expenditure of advertisement and we have to engage the
top management in additional activity this also create hurdle.

Recruitment Sources:
Recruiting is more likely to achieve its objectives if recruiting sources reflect the
type of position to be filled.
1. Internal Source:
A promotion-from-within concept. It means when you perform recruitment
process within the organization.

a. Internal Search:
A promotion-from-within concept. If vacancy is available in an organization
then first we have to search internal employees weather an employee have
skills, knowledge, abilities to perform the job. We promote the suitable
candidate in this type of search. Promotion activities and job rotation are
performed.

Advantages:
 Promotes good public relations
 Build morale
 Encourages individuals who are qualified and ambitious
 Is less costly than going outside to recruit
 Helps with recruiting entry level workers
 reduces orientation and training costs

b. Employee Referrals:
A recommendation from a current employee regarding a job applicant.
Existing employee of the organization will refer the person with personal
relation. Organization does not make any effort and they feel secure.
Employee referrals can be done on the credibility of the employee.

2. External Source:
It means when you perform recruitment process outside the organization.

a. Blind box Ad:

An advertisement that does not identify the advertising organization. In this
type of ad we do not know about the organization in which we are going to
apply for the job and we cannot know about the identity of organization. The
purpose of this ad is to maintain the level of secrecy of the organization.
Example:
Securities agencies

b. Employment Agencies:
 It includes all the organizations that done the process of recruitment in the
behalf of other organization. These agencies hired the employee for the
organization and against it they charged some money for hiring process.

c. Executive Search firms:

Private employment agency specializing in middle- and top-management
placements.
It includes the hiring of top level and middle level management and search
done by the firm. A committee is established for evaluation of all the
candidate of top level of management. It is the methodology which is used to
hire top level management.

d. Job Fairs:
Events attended by employer representatives or recruiters with the goal of
reaching qualified candidates. The fair programs are done by inviting the
persons from different organization and then interviews are conducted.

3. Online Recruitment:
It is the practice of using technology and in particular Web-based resources
for tasks involved with finding, attracting, assessing, interviewing and hiring
new personnel.

Recruitment Alternatives:
The temporary ways of hiring people for the job position with a view to saving cost
incurred in recruiting process and meet the short-term demand for increased work
volume.

 Leased Employees:
Individuals hired by one firm and sent to work in another for a specific time.
In this process we hire the employee of the other organization for providing
services to us and we pay for it.

 Temporary Help Services

 Independent Contractors

Selection Process
Selection Process:
Selection is the process of picking up individuals (out of the pool of job applicants)
with requisite qualifications and competence to fill jobs in the organization.

Steps of selection process:

1. Initial Screening:
The first step in the selection process whereby job inquiries are sorted. It is
the step in which we eliminate the useless information and data from the
whole information.

2. Pre-Employment Test:
The test which is conducted by the organization before the job is called Pre-
employment test. It is conducted to check the knowledge, abilities, skills,
experience. It is done on the basis of nature of job.

 Performance simulation tests:

Work sampling and assessment centers evaluation abilities in actual job
activities.

 Work sampling:
A selection device requiring the job applicant to perform a small sampling of
actual job activities.

3. Comprehensive Interview:
A selection device used to obtain in depth information about a candidate.
Those employees who meet the criteria of pre-employment test are then
invited to comprehensive interview. he applicant may be interviewed by
HRM interviewers, senior managers within the organization, a potential
supervisor, colleagues, or some or all of these.

Interview issues:
a. Interview Bias:
Image created by reviewing materials such as the résumé, application,
or test scores prior to the actual interview. Before appearing in front
of interviewer, the interviewer builds the opinion in his mind on the
basis of some relevant information.

b. Impression Management:
Impression management is directly related to the applicant’s actions.
It refers to an applicant’s attempt to project an image that will result in
 a favorable outcome. How you build positive impression in the mind
of interviewer by replying the best answer to the questions asked by
the interviewer.

c. Behavioral Interview:
Observing job candidates not only for what they say but for how they
behave. Providing information to interviewer through non-verbal
communication.

4. Realistic Job Preview:

A selection device that allows job candidates to learn negative as well as
positive information about the job and organization. When interviewer think
that you are favorable candidate then realistic job preview is provided. It
means to providing real information about organization to the employee. Its
purpose is to realize that on actual work place what advantages you have and
what disadvantages you have. Its purpose is to explain all the realities of the
organization.

5. Conditional Job Offer:

A tentative job offer that becomes permanent after certain conditions are
met. If terms and conditions are accepted then organization offers the job.

a. Background Investigation:
The process of verifying information job candidates provide. Its purpose
is to check all the information relating to your background like family,
society etc.

 Reference persons are called to verify candidate information.

 Former employers should be called to confirm the candidate’s work
record and to obtain their performance appraisal.
 Educational accomplishments can be verified by asking for
transcripts.
 Criminal records can be checked by third-party investigators.
 Background checks are conducted by third-party investigators.

b. Medical/Physical Examination:
An examination to determine an applicant’s physical fitness for essential
job performance. In this examination different tests are conducted to
check the diseases.
If the above two conditions are fulfill then offer letter is issued and acceptance of
joining is provided.

Socialization Process
Socialization:

A process of adaptation that takes place as individuals attempt to learn the values
and norms of work roles.

Stages of Socialization Process:

1. Prearrival Stage:
This socialization process stage recognizes that individuals arrive in an
organization with a set of organizational values, attitudes, and expectations.

2. Encounter Stage:
The socialization stage where individuals confront the possible dichotomy
between their organizational expectations and reality. When we physically
enter into the organization then interaction about culture, values, employees
and attitude occur. Then we identify all the above things to check
expectation and reality. The main purpose is to check the comfort level.

3. Metamorphosis Stage:
The socialization stage during which the new employee must work out
inconsistencies discovered during the encounter stage. In this stage in which
we have to adjust in the environment according to your capabilities. You
have to set the mind according to the things that done in organization. You
have to make change in the organization when you have followers and you
can make change by giving thoughts.

Orientation:
Activities that introduce new employees to the organization and their work units.

Employees Training:
Present-oriented training that focuses on individuals’ current jobs. It is the short
term oriented activity that performs to solve the current problems.
 On the job training:
 The training which is provided n the actual work place to perform actual
tasks is called on the job training.
 Job rotation:
Transfer of job from one place to another for multi skills is called job
rotation.

 Internships:
The training that is provided to students to perform the actual tasks is
called internship.

 Apprenticeship:
Paid form of internship is called apprenticeship.

 Off the job training:

When training is provided on a artificial work place it is called off the job
training. Artificial activities are performed for providing the guidance.
 Lectures (special lectures are arranged)
 Multimedia (videos and audios used to provide training)
 Simulation (we build real work place environment at artificial work
place)
 Vestibule training (controlled environment)

Employee Development:
Future-oriented training that focuses on employee personal growth. It is the long
term process and future oriented activities that are performed to solve the long term
problems.

Methods:
a. Job Rotation:
Moving employees horizontally or vertically to expand their skills,
knowledge, or abilities.

b. Assistant to the position:

The position that will be free in future will assist by a person that will be
able to fill that position.

c. Committee Assignment:
Committee assignments can allow the employee to share in decision making,
to learn by watching others, and to investigate specific organizational
 problems. Temporary committees often act as a taskforce to delve into a
particular problem, ascertain alternative solutions, and recommend a
solution. These temporary assignments can be both interesting and
rewarding to the employee’s growth. Appointment to permanent committees
increases the employee’s exposure to other members of the organization,
broadens his or her understanding, and provides an opportunity to grow and
make recommendations under the scrutiny of other committee members.

d. Simulation:
Any artificial environment that attempts to closely mirror an actual
condition. The advantages of simulation exercises are the opportunities to
“create an environment” similar to real situations managers face, without
high costs for poor outcomes.

e. Lectures and seminars:

Traditional forms of instruction revolve around formal lecture courses and
seminars. These help individuals acquire knowledge and develop their
conceptual and analytical abilities. Many organizations offer these in house,
through outside vendors, or both.

Organizational Development:
The part of HRM that addresses system wide change in the organization. The
purpose of this development is to improve and grow your organization.

Change agent:
Individual responsible for fostering the change effort and assisting employees in
adapting to changes. These are the individuals who bring change in the
organization.
Example:
Trainers are the change agent.

OD Techniques:
Any organizational activity that assists with implementing planned change can be
viewed as an OD technique.
 Survey feedback:
Assessment of employees’ perceptions and attitudes regarding their jobs and
organization.

 Intergroup development:
 Helping members of various groups become a cohesive team. It is the
technique in which we check the group wise feedback and response towards
change.

Evaluation training programs:

a. Post training performance:
Evaluating training programs based on how well employees can perform
their jobs after training. It is the evaluation of actual performance after the
process of training.

b. Pre–post-training performance:
Evaluating training programs based on the difference in performance before and
after training. We check the improvement that comes after the process of
training in this kind of
method.
c. Pre–post-training performance with control group:
Evaluating training by comparing pre- and post-training results with
individuals. In this type of method we use statistical tools to interpretate the
result.

Managing Career

Career:
The sequence of employment positions that a person has held over his or her life.

Traditional Career Stages:

1. Exploration period
A career stage that usually ends in the mid-twenties as one makes the transition
from school to work. It is the stage when you complete your studies and you enter
into the professional life. This stage has the least relevance to organizations
because it occurs prior to employment. It is, of course, not irrelevant. During the
exploration period we develop many expectations about our career, a number of
them unrealistic. Such expectations may lie dormant for years and then pop up
later to frustrate both employee and employer.

2. Establishment Stage:
A career stage in which one begins to search for work and finds a first job. In this
stage we have to face challenges to show off our skills, abilities. The purpose is to
boost up the energy level. It creates the positive impact if we are successful.

3. Mid-Career:
A career stage marked by continuous improvement in performance, leveling off in
performance, or beginning decline of performance. When we spend time in
organization then we check the improvement through our performance. Therefore,
although remaining productive at work after you’re seasoned is a major challenge
of this career stage, the pattern ceases to be as clear as it was for exploration and
establishment. Some employees reach their early goals and go on to even greater
heights.

4. Late Career:
A career stage in which individuals are no longer learning about their jobs nor
expected to exceed levels of performance from previous years. It is the stage in
which our learning abilities are almost ends. We are the expert of our job. Late-
career individuals frequently escape expectations of outdoing their previous
performance. Their value to the organization typically lies heavily in their
judgment, built up over many years and through varied experiences. They often
teach others based on the knowledge they have gained.

5. Decline Career:
The final stage in one’s career, usually marked by retirement. After decades of
continued achievements and high levels of performance, the time has come for
retirement. These individuals step out of the limelight and relinquish a major
component of their identity. For those who have seen their performance decline
over the years, it may be a pleasant time; the frustrations associated with work are
left behind. For the plateaued, it is probably an easier transition to other life
activities.
Performance Management
Performance Management System:
Performance management systems involve numerous activities, far more than
simply reviewing what an employee has done. These systems must fulfill several
purposes. Moreover, they are often constrained by difficulties in how they operate.

The Appraisal Process:

1. Establish Performance Standard:
 In this step we have to set the standard on which we have to evaluate the
performance of the individual. If standards are not given then we cannot
evaluate the individual. We define the standards from job descriptions and
job specifications.

2. Communication Expectation:
Once performance standards are established, it is necessary to communicate
these expectations; employees should not have to guess what is expected of
them. Too many jobs have unclear performance standards, and the problem
is compounded when these standards are set in separation and without
employee input. Communication is a two way street: simple information
transfer from supervisor to employee is not successful communication. Its
purpose is to communicate that what we are expecting from employee.

3. Measuring Actual Performance:

The third step in the appraisal process is performance measurement. To
determine what actual performance is, we need information about it. We
should be concerned with how we measure and what we measure. Four
common sources of information frequently used by managers address how to
measure actual performance
 Personal observation
 Statistical reports
 Oral reports
 Written reports

4. Comparison of actual performance with standards:

The fourth step in the appraisal process is the comparison of actual
performance with standards. This step notes deviations between standard
performance and actual performance. If deviation is low then it is considered
as a good performance and vice versa.

5. Discussion With Employee:

Then we have to discuss the deviation with employee to determine the root
cause. The reason behind the bad performance is determined in this step.

6. Correction Action:
When problem is identified then corrective actions are taken by the manager
to reduce the deviation between standard performance and actual
performance. Corrective action can be of two types: one is immediate and
deals predominantly with symptoms, and the other is basic and delves into
 causes. Immediate corrective action is often described as “putting out fires,”
whereas basic corrective action touches the source of deviation and seeks to
adjust the difference permanently.

Reward

Reward:
Give something to (someone) in recognition of their services, efforts, or
achievements.

Types of Reward:
a. Intrinsic rewards
Satisfactions derived from the job itself, such as pride in one’s work, a
feeling of accomplishment, or being part of a team. It is the kind of reward
which gives us autonomy. These rewards are non-monetary in nature which
is provided to employee for job satisfaction. Enhancing jobs by giving
employees more opportunity to plan and control their work. Intrinsic
rewards are the non-physical rewards. They cannot be seen or touched but
are emotionally connected with the employees. Intrinsic reward is directly
related to job performance as a successful task automatically produces it.
Higher the success rate, higher will be the rate of intrinsic rewards one
receives.

 Sense of achievement
 Recognition
 Words of praise from the seniors
 Taking pride from the job
 Work freedom or autonomy

b. Extrinsic rewards:
Benefits provided by the employer, usually money, promotion, or benefits.
Extrinsic rewards are the physical ones that come from an external source
(employers) only. A properly designed extrinsic reward can also be
emotionally attached with the employees as employees value such rewards.
An extrinsic reward is also directly related to job performance of the
employees but it is necessary that employees receive reward every time they
accomplish the task. It depends upon the policy of the company.
 Pay
  Commission or bonus
 Promotion
 Profit sharing

Compensation Administration:
The process of managing a company’s compensation program is called
compensation administrative system. The goal of compensation administration is
to design a cost-effective pay structure that will attract, motivate, and retain
competent employees. The structure should also appear fair to employees. Fairness
is a term that frequently arises in the administration of an organization’s
compensation program.
Special Cases for Compensation:
1. Incentive Compensation Plan:
The term incentive compensation refers to the portion of an
employee's salary that is related to performance, and not a guaranteed
payment. Incentive compensation is additional money, or other rewards of
value such as stock options, that are supplementary to base salary. When you
assigned task to employee and you plan the benefits on achieving the tasks.
It is based on performance of the employee. You have to attach incentives
with tasks. It is additional benefits rather than the basic criteria.

2. Pay for Performance:

It means rewarding employees based on their job performance. A financial
reward system for employees where some or all of their monetary
compensation is related to how their performance is assessed relative to
stated criteria. Performance related pay can be used in a business context for
how an individual, a team or the entire company performs during a given
time frame.

3. Team Based Compensation:

Pay based on how well the team performed. When you engage your
employee in different groups and evaluate the performance on the basis of
groups and teams then compensation is paid to the high rated group.

International Compensation System:

1. Base Pay:
 Base pay is a fixed amount of money paid to an employee by an employer in
return for work performed. Base pay does not include benefits, bonuses or
any other potential compensation from an employer. The base pay is either
paid in the expatriate’s home or parent country currency, or in the currency
of the expatriate’s host country.

2. Differentials:
The cost of living fluctuates around the world, and the value of the dollar to
foreign currencies affects prices. Differentials offset the higher costs of
overseas goods, services, and housing. The State Department, which has
employees in almost every country in the world, publishes a regularly
updated comparison of global costs of living used by most multinational
corporations for providing differentials to maintain the standards of living
the expatriate would enjoy if he or she were home.

3. Incentives:
A monetary gift provided to an employee based on performance, which is
thought of as one way to entice the employee to continue delivering
positive results. Incentive pay may come in the form of a bonus , profit
sharing, or commission. These are the compensation which is provided to
the employee on the basis of additional performance or on task achievement.

4. Assistance Programs:
The overseas transfer requires much expenditure for the employee’s family.
Some assistance programs commonly offered by multinational corporations
include household goods shipping and storage; major appliances; legal
clearance for pets and their shipment; home sale/rental protection;
automobile protection; temporary living expenses; travel, including
prerelocation visits and annual home leaves; special/emergency return
leaves; education allowances for children; club memberships (for corporate
entertaining); and security (including electronic systems and bodyguards), if
necessary.