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UNIT 2
THE CONCEPT OF
BEST FIT
EMPLOYEE
Presented by Shaik Asia
Assistant Professor -ISSM
Importance of HRP
What is HRP?
HRP is a process of determining and assuming that the organization will
have an adequate number of qualified persons, available at proper times,
performing jobs which meet the needs of the enterprise and which provides
satisfaction for the individuals involved. - Beach
HRP is a Four-Phased Process.
First Phase Second Phase Third Phase Fourth Phase
The focus of HR planning is to ensure that the organization has the
right number of human resources, with the right capabilities, at the
right times, and in the right places. In HR planning, an organization
must consider the availability and allocation of people to jobs over
long periods of time, not just for the next month or the next year
Factors to consider include the current employees‘ knowledge, skills,
and abilities and the expected vacancies resulting from retirements,
promotions, transfers, and discharges. To do this, HR planning
requires efforts by HR professionals working with executives and
managers.
Nature of Human resource planning
Objectives of Human Resource Planning:
Importance of HRP
HRP Process
HR Demand Forecasting
Managerial Judgment
Ratio- trend analysis
Delphi techniques
Work study
techniques
Brainstorming
Managerial Judgement:
Managerial judgement technique is very common technique of demand
forecasting. This approach is applied by small as well as large scale
organisations. This technique involves two types of approaches i.e. 'bottom-up
approach' and 'top-down approach'. Under the 'bottom-up approach', line
mangers send their departmental requirement of human resources to top
management. Top management ultimately forecasts the human resource
requirement for the overall organisation on the basis of proposals of
departmental heads. Under the Top-down approach', top management
forecasts the human resource requirement for the entire organisation and
various departments.
This information is supplied to various departmental heads for their review and
approval. However, a combination of both the approaches i.e. 'Participative Approach'
should be applied for demand forecasting. Under this approach, top management and
departmental heads meet and decide about the future human resource requirement. So,
demand of human resources can be forecasted with unanimity under this approach.
Ratio- trend analysis
Demand for manpower/human resources is also estimated on the
basis of ratio of production level and number of workers available.
This ratio will be used to estimate demand of human resources.
The following example will help in clearly understanding this
technique.
Estimated production for next year = 1,40,000 units
Estimated no. of workers needed
(on the basis of ratio-trend of 1: 200) will be = 700
Brainstorming is a popular method for encouraging creative thinking in
groups of about five to eight people (Ivanceivich, 1998).
Brainstorming is a group or individual’s creativity technique by which
efforts are made to find a conclusion for a specific problem by gathering a
list of ideas spontaneously contributed by its member(s).
It is built around four basic guidelines for participants:
● Generate as many ideas as possible.
● Be creative, freewheeling & imaginative.
● Build upon extending or combine earlier ideas,
● Withhold criticism of others’ ideas.
Brainstorming
Advantages of Brainstorming
There are many advantages of
brainstorming such as
1. Group members are
enthusiastic,
2. Broad level participation,
3. Group members maintain a
strong task orientation,
4. New ideas are built upon &
extended and
5. Combined and improved
ideas.
Disadvantages of Brainstorming
The major disadvantages of
brainstorming are:
1. Members typically feel that
the final product is a team
solution, not individual,
2. Residual fear among some
members,
3. Creative thoughts are looked
down upon,
4. Less contribution to group
cohesion.
5. Only one person can speak at
a time
This technique is also known as 'work-load analysis'. This technique is suitable where the
estimated work-load is easily measureable. Under this method, estimated total production and
activities for a specific future period are predicted. This information is translated into number
of man-hours required to produce per units taking into consideration the capability of the
workforce. Past-experience of the management can help in translating the work-loads into
number of man-hours required. Thus, demand of human resources is forecasted on the basis of
estimated total production and contribution of each employee in producing each unit items. The
following example gives clear idea about this technique.
Let us assume that the estimated production of an organisation is 3.00.000 units. The standard
man-hours required to produce each unit are 2 hours. The past experiences show that the work
ability of each employee in man-hours is 1500 hours per annum. The work-load and demand of
human resources can be calculated as under:
● Estimated total annual production = 300000 units
● Standard man-hours needed to produce each unit = 2 hrs
● Estimated man-hours needed to meet estimated annual production (i x ii) = 600000 hrs
● Work ability/contribution per employee in terms of man-hour = 1500 units
● Estimated no. of workers needed (iii / iv) = 600000/1500 = 400 units
The above example clearly shows that 400 workers are needed for the year. Further,
absenteeism rate, rate of labour turnover, resignations, deaths, machine break-down, strikes,
power-failure etc. should also be taken into consideration while estimating future demand of
human resources/ manpower.
Work study techniques
Delphi Technique:
Delphi technique is also very important technique used for estimating demand of human
resources. This technique takes into consideration human resources requirements given by
a group of experts i.e. managers. The human resource experts collect the manpower needs,
summarises the various responses and prepare a report. This process is continued until all
experts agree on estimated human resources requirement.
1) Experts may range from first-line supervisors to top-level managers.
Sometimes, outside experts are also used.
2) The main objective of the Delphi technique is to predict future developments
in a given area by integrating the independent opinions of experts.
3) Face-to-face group discussion among the experts is avoided to eliminate
criticism and compromise on good ideas.
Guidelines to make the Delphi process most useful:
● Give the experts enough information to make an informed judgment.
● Do not require precision.
● Keep the exercise as simple as possible.
● Be sure that the classification of employees and other definitions are
understood in the same way by all experts.
● Enlist top management’s expert’s support of the Delphi process by showing
how good forecasts will benefit the organization and how they will affect
profitability and workforce productivity.
The Delphi technique produces a few important benefits such as
a) elimination of interpersonal problems among panelists,
b) efficient use of experts’ time,
c) adequate time for reflection & analysis by respondents,
d) diversity & quantity of ideas generated and
e) accuracy of predictions & forecasts made.
HR Supply Forecast
Requisites for Successful HRP
HRP must be recognized as an integral part of corporate planning
2. Support of top management is essential
3. There should be some centralization with respect to HRP responsibilities
in order to have co-ordination between different levels of management.
4. Organization records must be complete, up to date and readily available.
5. Techniques used for HR planning should be those best suited to the data
available and degree of accuracy required.
6. Data collection, analysis, techniques of planning and the plan themselves
need to be constantly revised and improved in the light of experience.
Barriers to HRP
Sources of Recruitment
INTERNAL
SOURCES
EXTERNAL SOURCES
Previous Applicants
Present Employees
Employee Referrals
Former Employee
Advertisements
Campus Recruitment
E-Recruitment
Walkin & Write-ins
Contractors
Professional Associations
RECRUITMENT
Recruiting is a process to discover the sources of manpower to meet the
requirements of the staffing schedule and to employ effective measures
for attracting that manpower in adequate numbers to facilitate effective
selection of an efficient working force.
The need for recruitment arises out of the following situations:
❖ Vacancies created due to expansion, diversification, and growth of
business.
❖ An increase in the competitive advantage of certain concerns, enabling
them to get more of the available business than formerly.
❖ An increase in business arising from an upswing during the recovery
period of a business cycle.
❖ Vacancies created due to transfer, promotion, retirement, termination,
permanent disability or death.
❖ The normal population growth, which requires increased goods and
services to meet the needs of the people.
❖ A rising standard of living, which requires more of the same goods and
services as well as the creation of new wants to be satisfied.
Recruitment
Process
Recruitment Policy
Factor’s Affecting Recruitment
Methods of Recruitment
Selection
Selection is the process in which candidates for employment are divided into two
classes-those who are to be offered employment and those who are not.
Selection has two objectives:
(1) to predict which job applicants would be successful if hired and
(2) to inform and sell the candidate on the job and the organization. Satisfaction of
employee needs and wants as well as the fullest development of his potential are
important objectives of selection.
Selection Tests
Ability Tests Personality Test
1) Aptitude Tests
2) Achievement Tests
3) Intelligence Tests
4) Judgment Test
1) Interest Tests
2) Personality Tests
3) Projective Tests
4) Attitude Test
Difference Between Recruitment & Selection
INDUCTION
Induction - the process of familiarization with the organization and settling
into the job. It is easy to forget that the selection process is only the beginning of the
employment relationship, and the future of that relationship depends to a considerable
extent on how the new employee is settled into the job. Most labor turnover is among
new employees, and work efficiency is reached only after a period of learning and
adjusting to the new environment.
However keen new recruits may be, they may have anxieties about how well they
will:
• get on with their co-workers
• understand the standards and rules (written and unwritten) of the organization
• make a good impression on their new manager or supervisor
• be able to do the job.
Socialization
In order to reduce the anxiety that new employees may experience, attempts
should be made to integrate the person into the informal organization. The
initial T&D effort designed for employees is Socialization, the guided
adjustment of new employees to the company, the job, and the work group.
Purpose of Socialization
✔ The Employment Situation
✔ Company Policies and Rules
✔ Compensation and Benefits
✔ Corporate Culture
✔ Team Membership
✔ Employee Development
✔ Dealing With Change
✔ Socialization
Stages in socialization Process:
Many People Socialize new Hires
• HRM Department
• Supervisor
• Peers
• Organizational culture
• CEO
Employee Orientation program:
• Introduction
• Job Duties
• Organizational Issues
• Employee Benefits
• Training
• Development
• Training and
Development Trends
The Hiring Process
Socialization benefits
• Helps in understanding organization culture
• Contributes to employee‘s long term
success
• Helps in adjustment
• Helps in employee engagement
• Provides job satisfaction.

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Unit 2 the concept of best fit employee

  • 1. UNIT 2 THE CONCEPT OF BEST FIT EMPLOYEE Presented by Shaik Asia Assistant Professor -ISSM
  • 2. Importance of HRP What is HRP? HRP is a process of determining and assuming that the organization will have an adequate number of qualified persons, available at proper times, performing jobs which meet the needs of the enterprise and which provides satisfaction for the individuals involved. - Beach HRP is a Four-Phased Process. First Phase Second Phase Third Phase Fourth Phase
  • 3. The focus of HR planning is to ensure that the organization has the right number of human resources, with the right capabilities, at the right times, and in the right places. In HR planning, an organization must consider the availability and allocation of people to jobs over long periods of time, not just for the next month or the next year Factors to consider include the current employees‘ knowledge, skills, and abilities and the expected vacancies resulting from retirements, promotions, transfers, and discharges. To do this, HR planning requires efforts by HR professionals working with executives and managers. Nature of Human resource planning
  • 4. Objectives of Human Resource Planning:
  • 7. HR Demand Forecasting Managerial Judgment Ratio- trend analysis Delphi techniques Work study techniques Brainstorming
  • 8. Managerial Judgement: Managerial judgement technique is very common technique of demand forecasting. This approach is applied by small as well as large scale organisations. This technique involves two types of approaches i.e. 'bottom-up approach' and 'top-down approach'. Under the 'bottom-up approach', line mangers send their departmental requirement of human resources to top management. Top management ultimately forecasts the human resource requirement for the overall organisation on the basis of proposals of departmental heads. Under the Top-down approach', top management forecasts the human resource requirement for the entire organisation and various departments. This information is supplied to various departmental heads for their review and approval. However, a combination of both the approaches i.e. 'Participative Approach' should be applied for demand forecasting. Under this approach, top management and departmental heads meet and decide about the future human resource requirement. So, demand of human resources can be forecasted with unanimity under this approach.
  • 9. Ratio- trend analysis Demand for manpower/human resources is also estimated on the basis of ratio of production level and number of workers available. This ratio will be used to estimate demand of human resources. The following example will help in clearly understanding this technique. Estimated production for next year = 1,40,000 units Estimated no. of workers needed (on the basis of ratio-trend of 1: 200) will be = 700
  • 10. Brainstorming is a popular method for encouraging creative thinking in groups of about five to eight people (Ivanceivich, 1998). Brainstorming is a group or individual’s creativity technique by which efforts are made to find a conclusion for a specific problem by gathering a list of ideas spontaneously contributed by its member(s). It is built around four basic guidelines for participants: ● Generate as many ideas as possible. ● Be creative, freewheeling & imaginative. ● Build upon extending or combine earlier ideas, ● Withhold criticism of others’ ideas. Brainstorming
  • 11. Advantages of Brainstorming There are many advantages of brainstorming such as 1. Group members are enthusiastic, 2. Broad level participation, 3. Group members maintain a strong task orientation, 4. New ideas are built upon & extended and 5. Combined and improved ideas. Disadvantages of Brainstorming The major disadvantages of brainstorming are: 1. Members typically feel that the final product is a team solution, not individual, 2. Residual fear among some members, 3. Creative thoughts are looked down upon, 4. Less contribution to group cohesion. 5. Only one person can speak at a time
  • 12. This technique is also known as 'work-load analysis'. This technique is suitable where the estimated work-load is easily measureable. Under this method, estimated total production and activities for a specific future period are predicted. This information is translated into number of man-hours required to produce per units taking into consideration the capability of the workforce. Past-experience of the management can help in translating the work-loads into number of man-hours required. Thus, demand of human resources is forecasted on the basis of estimated total production and contribution of each employee in producing each unit items. The following example gives clear idea about this technique. Let us assume that the estimated production of an organisation is 3.00.000 units. The standard man-hours required to produce each unit are 2 hours. The past experiences show that the work ability of each employee in man-hours is 1500 hours per annum. The work-load and demand of human resources can be calculated as under: ● Estimated total annual production = 300000 units ● Standard man-hours needed to produce each unit = 2 hrs ● Estimated man-hours needed to meet estimated annual production (i x ii) = 600000 hrs ● Work ability/contribution per employee in terms of man-hour = 1500 units ● Estimated no. of workers needed (iii / iv) = 600000/1500 = 400 units The above example clearly shows that 400 workers are needed for the year. Further, absenteeism rate, rate of labour turnover, resignations, deaths, machine break-down, strikes, power-failure etc. should also be taken into consideration while estimating future demand of human resources/ manpower. Work study techniques
  • 13. Delphi Technique: Delphi technique is also very important technique used for estimating demand of human resources. This technique takes into consideration human resources requirements given by a group of experts i.e. managers. The human resource experts collect the manpower needs, summarises the various responses and prepare a report. This process is continued until all experts agree on estimated human resources requirement. 1) Experts may range from first-line supervisors to top-level managers. Sometimes, outside experts are also used. 2) The main objective of the Delphi technique is to predict future developments in a given area by integrating the independent opinions of experts. 3) Face-to-face group discussion among the experts is avoided to eliminate criticism and compromise on good ideas.
  • 14. Guidelines to make the Delphi process most useful: ● Give the experts enough information to make an informed judgment. ● Do not require precision. ● Keep the exercise as simple as possible. ● Be sure that the classification of employees and other definitions are understood in the same way by all experts. ● Enlist top management’s expert’s support of the Delphi process by showing how good forecasts will benefit the organization and how they will affect profitability and workforce productivity. The Delphi technique produces a few important benefits such as a) elimination of interpersonal problems among panelists, b) efficient use of experts’ time, c) adequate time for reflection & analysis by respondents, d) diversity & quantity of ideas generated and e) accuracy of predictions & forecasts made.
  • 16. Requisites for Successful HRP HRP must be recognized as an integral part of corporate planning 2. Support of top management is essential 3. There should be some centralization with respect to HRP responsibilities in order to have co-ordination between different levels of management. 4. Organization records must be complete, up to date and readily available. 5. Techniques used for HR planning should be those best suited to the data available and degree of accuracy required. 6. Data collection, analysis, techniques of planning and the plan themselves need to be constantly revised and improved in the light of experience.
  • 18. Sources of Recruitment INTERNAL SOURCES EXTERNAL SOURCES Previous Applicants Present Employees Employee Referrals Former Employee Advertisements Campus Recruitment E-Recruitment Walkin & Write-ins Contractors Professional Associations
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  • 21. RECRUITMENT Recruiting is a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient working force. The need for recruitment arises out of the following situations: ❖ Vacancies created due to expansion, diversification, and growth of business. ❖ An increase in the competitive advantage of certain concerns, enabling them to get more of the available business than formerly. ❖ An increase in business arising from an upswing during the recovery period of a business cycle. ❖ Vacancies created due to transfer, promotion, retirement, termination, permanent disability or death. ❖ The normal population growth, which requires increased goods and services to meet the needs of the people. ❖ A rising standard of living, which requires more of the same goods and services as well as the creation of new wants to be satisfied.
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  • 27. Selection Selection is the process in which candidates for employment are divided into two classes-those who are to be offered employment and those who are not. Selection has two objectives: (1) to predict which job applicants would be successful if hired and (2) to inform and sell the candidate on the job and the organization. Satisfaction of employee needs and wants as well as the fullest development of his potential are important objectives of selection.
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  • 29. Selection Tests Ability Tests Personality Test 1) Aptitude Tests 2) Achievement Tests 3) Intelligence Tests 4) Judgment Test 1) Interest Tests 2) Personality Tests 3) Projective Tests 4) Attitude Test
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  • 32. INDUCTION Induction - the process of familiarization with the organization and settling into the job. It is easy to forget that the selection process is only the beginning of the employment relationship, and the future of that relationship depends to a considerable extent on how the new employee is settled into the job. Most labor turnover is among new employees, and work efficiency is reached only after a period of learning and adjusting to the new environment. However keen new recruits may be, they may have anxieties about how well they will: • get on with their co-workers • understand the standards and rules (written and unwritten) of the organization • make a good impression on their new manager or supervisor • be able to do the job.
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  • 34. Socialization In order to reduce the anxiety that new employees may experience, attempts should be made to integrate the person into the informal organization. The initial T&D effort designed for employees is Socialization, the guided adjustment of new employees to the company, the job, and the work group. Purpose of Socialization ✔ The Employment Situation ✔ Company Policies and Rules ✔ Compensation and Benefits ✔ Corporate Culture ✔ Team Membership ✔ Employee Development ✔ Dealing With Change ✔ Socialization
  • 36. Many People Socialize new Hires • HRM Department • Supervisor • Peers • Organizational culture • CEO Employee Orientation program: • Introduction • Job Duties • Organizational Issues • Employee Benefits • Training • Development • Training and Development Trends The Hiring Process Socialization benefits • Helps in understanding organization culture • Contributes to employee‘s long term success • Helps in adjustment • Helps in employee engagement • Provides job satisfaction.