2. Procurement
⢠Procurement is a fancy term meaning âto get.â To procure something
means to find and retrieve something, usually an item or a service.
⢠Procurement is first operational function of Human resource or personnel
management. Procurement is subjected to procuring and employing people
who fits the position and have necessary skill set, mindset, attitude and
values.
HR Procurement
⢠Procuring people: People are a resource â many would say a businessâs
most important resource (and certainly one of the most expensive).
Procurement, then, for HR, is the function of their job that makes them the
expert in finding and obtaining this resource. This part of HR usually falls
under recruitment, with recruiters focusing their time and skills in this area.
⢠Procuring supplies: HR is also often responsible for physically ordering office
supplies that the people in the office need and use. Anything from printer
paper to coffee to pens (and in many small businesses the furniture, etc.) is
often taken care of by a human resource manager. Supplies might also
mean the physical needs of a business-sponsored event, whether itâs tables
3. Procurement Functions
⢠Job analysis:- Job analysis in human resource management (HRM) refers to the
process of identifying and determining the duties, responsibilities, and
specifications of a given job. Job analysis in HRM helps establish the level of
experience, qualifications, skills and knowledge needed to perform
a job successfully.
⢠Manpower planning:- Manpower planning is the process of estimating the
optimum number of people required for completing a project, task or a goal
within time. Manpower planning includes parameters like number of personnel,
different types of skills, time period etc.
⢠Recruitment:- Recruitment refers to the process where potential applicants are
searched for, and then encouraged to apply for an actual or anticipated
vacancy.
⢠Selection:- Selection is the process of hiring employees among the shortlisted
candidates and providing them a job in the organization.
⢠Placement:- Placement is the process of assigning a specific job to each one of
the selected candidates.
⢠Induction:- Induction is the process for welcoming newly recruited employees
and supporting them to adjust to their new roles and working environments.
Starting a new job can be a stressful experience and new employees need help
4.
5. Job Analysis
â˘Job analysis is a systematic and detailed examination of jobs. It is a procedure for
determining the duties and skill requirements of a job and the kind of person who
should be hired for it.
â˘Job analysis is the procedure through which you determine the duties and nature of
the jobs and the kinds of people who should be hired for their goal. It provides to
write job descriptions and job specifications, which are utilized in recruitment and
selection, compensation, performance appraisal, and training.
â˘According to Scott, Clother and Spriegel âjob analysis is the process of critically
evaluating the operations, duties and responsibilities of the jobâ.
â˘In the words of Yoder âjob analysis is the procedure by which the facts with respect
to each job are systematically discovered and notedâ.
â˘The job analysis may include these activities:
â˘(a) Reviewing the job responsibilities of current employees,
â˘(b) Doing Internet research and viewing sample job descriptions online or offline
highlighting similar jobs,
â˘(c) Analysing the work duties, tasks, and responsibilities that need to be
accomplished by filling the position,
â˘(d) Researching and sharing with companies that have similar jobs, and
â˘(e) Articulation of the important outcomes or contributions needed from position.
6. 1. Job:- In simple language, a job may be understood as a division of total work into
packages/positions. According to Dale Yoder, âA job is a collection or aggregation
of tasks, duties and responsibilities as a whole, is regarded as a regular assignment
to individual employees and which is different from other assignmentsâ.
2. Job descriptions :-Job description clearly identifies and spells out the
responsibilities of a specific job. Job descriptions include information about
working conditions, tools, equipment used, knowledge and skills needed, and
relationships with other positions.
3. Position Description:-The Human Resources Director originates and leads Human
Resources practices and objectives that will provide an employee-oriented, high
performance culture that emphasizes empowerment, quality, productivity and
standards, goal attainment, and the recruitment and on-going development of a
superior workforce.
4. Job Specification:- It is a standard of personnel and designates the qualities
required for an acceptable performance. It is written record of the requirements
sought in an individual worker for a given job. It refers to a summary of the
personnel characteristics required for a job. It is a statement of the minimum
acceptable human qualities necessary for the proper performance of a job.
5. Job Design:- Job design is the division of the total task to be performed into the
manageable and efficient units- positions, departments and divisions-and to
provide for their proper integration.
7.
8. Job Description
Job description includes basic job-related data that is useful to advertise a
specific job and attract a pool of talent. It includes information such as job
title, job location, reporting to and of employees, job summary, nature and
objectives of a job, tasks and duties to be performed, working conditions,
machines, tools and equipments to be used by a prospective worker and
hazards involved in it.
Purpose of Job Description
⢠The main purpose of job description is to collect job-related data in order
to advertise for a particular job. It helps in attracting, targeting,
recruiting and selecting the right candidate for the right job.
⢠It is done to determine what needs to be delivered in a particular job. It
clarifies what employees are supposed to do if selected for that
particular job opening.
⢠It gives recruiting staff a clear view what kind of candidate is required by
a particular department or division to perform a specific task or job.
⢠It also clarifies who will report to whom.
9. Job Specification
A job specification is a written statement of educational qualifications, specific
qualities, level of experience, physical, emotional, technical and communication skills
required to perform a job, responsibilities involved in a job and other unusual sensory
demands. It also includes general health, mental health, intelligence, aptitude,
memory, judgment, leadership skills, emotional ability, adaptability, flexibility, values
and ethics, manners and creativity, etc.
Purpose of Job Specification
⢠Described on the basis of job description, job specification helps candidates
analyze whether are eligible to apply for a particular job vacancy or not.
⢠It helps recruiting team of an organization understand what level of qualifications,
qualities and set of characteristics should be present in a candidate to make him or
her eligible for the job opening.
⢠Job Specification gives detailed information about any job including job
responsibilities, desired technical and physical skills, conversational ability and
much more.
⢠It helps in selecting the most appropriate candidate for a particular job.
⢠Job description and job specification are two integral parts of job analysis. They
define a job fully and guide both employer and employee on how to go about the
whole process of recruitment and selection. Both data sets are extremely relevant
for creating a right fit between job and talent, evaluate performance and analyze
10. Manpower planning
⢠Manpower planning is the process of estimating the optimum
number of people required for completing a project, task or a goal
within time. Manpower planning includes parameters like number
of personnel, different types of skills, time period etc.
⢠It is the process that management uses to determine the manner in
which an organization should move from point A to point B, in terms
of manpower.
⢠To predict the employee turnover and make the arrangements for
minimizing turnover and filling up of consequent vacancies.
⢠To appraise the surplus or shortage of human resources and take
actions accordingly.
⢠To maintain pleasant industrial relations by maintaining optimum
level and structure of human resource.
⢠To minimize imbalances caused due to non-availability of human
resources of right kind, right number in right time and right place.
11.
12. Labour turnover refers to the rate at which employees leave
employment. Labour turnover can be evaluated by relating
the number of employees leaving their employment during a
period of time to the total or average numbers employed in
that period.
Rust-out is the term occupational psychologists give to
symptoms arising from jobs that leave people feeling
apathetic, disinterested and dull. ... Workers who do not
identify with their jobs the way they used to.
13. Steps in Manpower Planning
⢠Analysing the current manpower inventory- Before a manager makes
forecast of future manpower, the current manpower status has to be
analysed. For this the following things have to be noted-
Type of organization
Number of departments
Number of sub departments
Employees in these work units
Once these factors are registered by a manager, he goes for the future
forecasting.
⢠âMaking future manpower forecasts- Once the factors affecting the future
manpower forecasts are known, planning can be done for the future
manpower requirements in several work units.
The Manpower forecasting techniques commonly employed by the
organizations are as follows:
Expert Forecasts: This includes informal decisions, formal expert surveys
and Delphi technique.
(The Delphi method is a process used to arrive at a group opinion or decision by
14. Trend Analysis: Manpower needs can be projected through extrapolation
(projecting past trends), indexation (using base year as basis), and statistical analysis
(central tendency measure).
Work Load Analysis: It is dependent upon the nature of workload in a department,
in a branch or in a division.
Workforce Analysis: Whenever production and time period has to be analysed, due
allowances have to be made for getting net manpower requirements.
(Workload analysis means how many workers are needed by the organization to do
the work. Whereas Workforce analysis means that how many workers are already there
in the organization.)
Other methods: Several Mathematical models, with the aid of computers are used
to forecast manpower needs, like budget and planning analysis, regression, new venture
analysis.
⢠Developing employment programmes- Once the current inventory is compared
with future forecasts, the employment programmes can be framed and developed
accordingly, which will include recruitment, selection procedures and placement
plans.
⢠Design training programmes- These will be based upon extent of diversification,
expansion plans, development programmes,etc. Training programmes depend upon
the extent of improvement in technology and advancement to take place. It is also
done to improve upon the skills, capabilities, knowledge of the workers.
15. Job Enlargement Vs Job Enrichment
Job enlargement and job enrichment are both used as techniques for
employee motivation and satisfaction. However, they differ a lot from
each other. The critical difference is job enlargement is a horizontal
expansion of duties and tasks across the same organizational level.
Job enrichment is the vertical expansion of the roles, responsibilities,
authority and activities along with the different hierarchical levels.
16. Recruitment
Advertising vacancies. Hiring. Conducting job interviews. Performing background
checks. Reviewing application documents and credentials. Screening.
These are simply several of the many words and phrases that we hear, all of them
relating to choosing a person to do a job in an organization. All of the terms apply, and
that is because they are part of one all-encompassing process in human resources
management, and that is Recruitment.
Recruitment refers to the process of identifying, attracting, interviewing, selecting,
hiring and onboarding employees. In other words, it involves everything from the
identification of a staffing need to filling it. In addition, many organizations outsource
recruiting to outside firms.
17. Factors Influencing Recruitment
1. Size of the Enterprise: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
18. 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.
19. Internal Sources of Recruitment
Internal sources of recruitment refer to seeking the employees from within the
organisation to fill up the vacant position. Many companies consider internal
recruitment as a great option since it is cost-effective, and they tend to hire
employees who have a better know how the organisation and its policies.
Internal recruitment can be done through the following means:
⢠Previous Applicants: To fill up the immediate openings, calling up or
emailing the candidates who have previously applied to the organisation is
the cheapest and quickest source of recruitment.
⢠Present Employees: The recruiter can exercise promotion (to a higher
position) or transfer (inter-department or inter-branch transfer) of the
current employees instead of recruiting the new employees.
⢠Employee Referrals: Sometimes, the organisation hires the candidates
referred by the existing employees assuming that such candidates are
more trustworthy and reliable.
⢠Former Employees: Some organisations provide for an option of re-joining
to its ex-employees. They even consider the retired employees who are
willing to give their full time or part-time services to the organisation.
20. External Sources of Recruitment
External sources of recruitment signify the hiring of those employees who
have never been associated with the organisation before.
Following are the various external sources through which the organisation
acquire new resources:
⢠Advertisements: The organisation advertises the job openings in the
newspaper, media, companyâs bulletin, social networking sites (Facebook,
LinkedIn, Twitter etc.), job portals, etc.
⢠Campus Recruitment: The organisation collaborates with the educational
institutes and colleges to hire their students for the available job
vacancies, by conducting the recruitment process in the respective college
campus.
⢠E(Electronic)-Recruitment: The organisation uses the web-based software
as a source of recruitment involving electronic screening of candidates,
online skill test, online profile checks and interviews on video-
conferencing.
⢠Employment Exchange: The organisation gets itself registered with the
employment exchange, i.e. a government-affiliated agency who have a
database of many prospective candidates. These candidates register with
such employment exchanges in search of better job opportunities.
21. ⢠Outsourcing Consultancies: Some private consultancies are professionally
working to recruit employees on behalf of the organisation. The organisation
hires such consultants on a commission basis to acquire the desired human
resource.
⢠Walk-ins and Write-ins: The organisations without any effort, get random
applications when the job seekers submit their CV. Either by visiting the
organisation, posting the letter with CV or mailing the CV on the companyâs
mail id.
⢠Contractors: The organisation hires a contractor who provides casual
workers temporarily, especially for a particular project, and such workers
have no existence in the companyâs records.
⢠Acquisition and Mergers: At the time of the companyâs merger or
acquisition of another company; it has to lay off some of its employees as
well as recruit new talents. The company structure changes drastically.
⢠Professional Associations: Professional associations facilitates the
organisation to fill in the vacant position by advertising it in their journal or
magazines. It also offers job opportunities to the highly educated, skilled or
experienced resources who are experts in their fields and hold a
membership with such associations.
22. Managing job applications
⢠For many jobs, a business will ask applicants to provide a
Curriculum Vitae (CV). This is a document that the
applicant designs providing the details such as:
⢠Personal details:- Name, address, date of birth, nationality
⢠Educational history:- Including examination results,
schools/universities attended, professional qualifications
⢠Previous employment history:- Names of employers,
position held, main achievements, remuneration package,
reasons for leaving.
⢠Suitability and reasons for applying for the job
⢠A chance for applicants to 'sell themselves'
⢠Names of referees:- Often recent employer or people who
know applicant well and are ideally independent
24. Receiving Applications :-
Potential employees apply for a job by sending applications to the
organisation. The application gives the interviewers information about the
candidates like their bio-data, work experience, hobbies and interests.
Screening Applications :-
Once the applications are received, they are screened by a special screening
committee who choose candidates from the applications to call for an
interview. Applicants may be selected on special criteria like qualifications,
work experience etc.
Employment Tests :-
Before an organisation decides a suitable job for any individual, they have to
gauge their talents and skills. This is done through various employment tests
like intelligence tests, aptitude tests, proficiency tests, personality tests etc.
Employment Interview:-
The next step in the selection process is the employee interview.
Employment interviews are done to identify a candidateâs skill set and ability
to work in an organisation in detail. Purpose of an employment interview is to
find out the suitability of the candidate and to give him an idea about the
work profile and what is expected of the potential employee. An employment
interview is critical for the selection of the right people for the right jobs.
25. Checking References :-
The person who gives the reference of a potential employee is also a very
important source of information. The referee can provide info about the personâs
capabilities, experience in the previous companies and leadership and managerial
skills. The information provided by the referee is meant to kept confidential with
the HR department.
Medical Examination :-
The medical exam is also a very important step in the selection process. Medical
exams help the employers know if any of the potential candidates are physically
and mentally fit to perform their duties in their jobs. A good system of medical
checkups ensures that the employee standards of health are higher and there are
fewer cases of absenteeism, accidents and employee turnover.
Final Selection and Appointment Letter :-
This is the final step in the selection process. After the candidate has successfully
passed all written tests, interviews and medical examination, the employee is sent
or emailed an appointment letter, confirming his selection to the job. The
appointment letter contains all the details of the job like working hours, salary,
leave allowance etc. Often, employees are hired on a conditional basis where they
are hired permanently after the employees are satisfied with their performance.
26. Importance of the Selection Process
⢠Proper selection and placement of employees lead to
growth and development of the company. The company
can similarly, only be as good as the capabilities of its
employees.
⢠The hiring of talented and skilled employees results in the
swift achievement of company goals.
⢠Industrial accidents will drastically reduce in numbers
when the right technical staff is employed for the right
jobs.
⢠When people get jobs they are good at, it creates a sense
of satisfaction with them and thus their work efficiency
and quality improves.
⢠People who are satisfied with their jobs often tend to have
high morale and motivation to perform better.
27. Induction and Orientation
Induction and Orientation are the two programs designed to provide new
joined with the information they require to function comfortably and
efficiently in the organisation.
Induction refers to the process of introducing a new comer to his
employer/ company and work environment. Orientation on the other
hand, is a well designed program which aims at reorganizing a new
employee and making him accustomed to his department, job role and
work culture.
OBJECTIVES:-
⢠To help new staff form positive first impressions, that he/she belongs
to the company, feels welcome and supported;
⢠To assist in understanding the culture and values;
⢠To improve staff efficiency, work standards, revenue and profits;
⢠To improve staff morale
28. Comparison Chart
Sr.
No.
Basis for
Comparison
Induction Orientation
1. Meaning Induction is a process takes
place to welcome newcomer to
the organization, to make them
ready for their job.
A process which involves
assimilation of new joinee into
the organization to
rehabilitate him at the new
workplace and provided with
basic information about the
company.
2. Process One way Two Way
3. Involves Introduction of the employee
with the organization.
Integration of the employee in
the organization.
4. Time Horizon Short Term Long Term
5. Sequence First Second
6. Form Detailed presentation or
brochure of the company's rules,
policies and employee benefits
is provided.
Practical overview of the
organization.
29. Promotion
Employee Promotion means the ascension of an employee to higher ranks. It involves an
increase in salary, rank, responsibilities, status, and benefits. This aspect of the job is
what drives employees the most. The ultimate reward for dedication and loyalty
towards an organization.
Types of Employee Promotion
1. Horizontal Promotion:-This kind of promotion rewards an employee with an increase
in pay but little to no change in responsibilities. It is also regarded as an up-gradation of
an employee. In the educational sector, an example of this is the move from lecturer to
senior lecturer.
2. Vertical Promotion:-This refers to an upward movement of employees with a change
in skills and experience. It brings a change in salary, responsibility, status, benefits, etc.
In the marketing industry, this can be the promotion of a marketing supervisor to the
marketing manager.
3. Dry Promotion:-A Promotion that employees arenât particularly fond of. This
promotion refers to an increase in responsibilities and status without the benefits. It
means no increase in pay or any financial benefits for that matter.
4. Open and Closed Promotion:-Open Promotion is a situation wherein every individual
of an organization is eligible for the position. Closed Promotion is a situation wherein
only selected team members are eligible for a promotion.
30. Demotion
Demotion is just opposite to promotion. In demotion, the employee is shifted
to a job lower in status, grade and responsibilities. âDemotion refers to the
lowering down of the status, salary and responsibilities of an employee.â
Some of reasons of demotion are as follows:
1. Inadequacy on the part of the employees in terms of job performance,
attitude and capability. It happens when an employee finds it difficult to
meet job requirement standards.
2. Demotion may result from organisational staff reductions. Due to adverse
business conditions, organisations may decide to lay off some and
downgrade some jobs.
3. Demotions may be used as disciplinary tools against errant employees.
4. If there is a mistake in staffing i.e., a person is promoted wrongly.
5. When, because of a change in technology, methods and practices, old
hands are unable to adjust or when employees because of ill health or
personal reasons, cannot do their job properly.
31. Transfer
Transfer is a process placing employees in positions where they are likely to be
more effective or where they are likely to get more job satisfaction this
transfer is a process of employeeâs adjustment with the work, time and place.
In transfers there is change in responsibility, designation and pay, etc.
Employees may initiate transfers for several reasons. They may demand a
change of bosses or of locations. They may try to obtain more allowances or
specific working conditions which are affixed to a new position. They may
want to join their friends and relatives or they may try to avoid interpersonal
conflicts with their present colleagues.
Objectives of a Transfer :-
1. To meet the exigencies of the companyâs business.
2. To meet the request of an employee.
3. To correct incompatibilities of employee.
4. To suit the age and health of an employee.
5. To provide creative opportunities to deserving employees.
6. To train the employees for later advancement and promotion this involves
actually job rotation.