Unit 2 - The Concept of Best Fit Employee
Unit 2 - The Concept of Best Fit Employee
Unit 2 - The Concept of Best Fit Employee
HR Forecasting Techniques
HR forecasts are attempts to predict an organization s future demand for employees.
The models for forecasting HR range from a manager s best guess to a complex
computer simulation. Simple models may be accurate in certain instances but
complex models may be necessary in others.
The type of forecast used depends on the time frame, and the type of organization its
size and dispersion, and the accuracy and certainty of available information.
Causes of demand
External challenges: Economical, social political- legal, &Technological challenges &
competitors.
Organizational decisions: Strategic plans, Budgets, Sales and production forecasts,
new ventures, Organization and job design.
Work force factors: Retirements, resignations, terminations, death, Leave of
absence.
II. Statistical techniques: Regression analysis, Productivity ratio, Personnel ratio, Time
series analysis, Stochastic analysis
I. Judgmental Forecasts
1. Bottom up or unit forecasting
Simplest judgmental technique
Each unit/dept. or Branch estimates its own future need for employees. Managers
receive some guidance or information which they combine with their own
perspectives to reach the estimates.
The sum of estimated unit needs is the demand forecast for the whole organization.
The estimates are approved by the next level of management and then forwarded to
HR planning groups which integrates them into an organization wide forecast.
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2. Top down Forecasting:
Estimates are made by top management and executives.
These people meet to discuss how trends, business plans, the economy and other
factors affect he need for HR at various levels.
Besides predicting the most likely future demand these experts may also make
separate forecasts based on best and worst scenarios.
The success of these estimates depends on the quality of the information provided to
the experts.
3. Delphi Technique:
One of the highly structured judgmental method of expert forecasting used to achieve
group consensus on a forecast.
In this technique experts do not meet face to face.
An anonymous questionnaire is developed that asks the experts for an opinion and
why they hold that opinion. The results are compiled and returned to the experts
along with a second anonymous questionnaire. In this way the experts can learn from
each other and modify their positions in the second questionnaire. The process
continues till they come to a judgment.
Merits:
The Delphi technique improves the quality of decision making by minimizing
disrupting personality conflicts and preventing the loudest group member from
dominating the decision making process.
Limitations:
This method is not appropriate if results are needed quickly.
Many practical difficulties in integrating expert s opinion.
Though both Delphi technique and NGT are simpler in process, Delphi is more
frequently used to generate predictions and NGT is used to identify current
organizational problems and solutions to those problems .Both are commonly used in
practice.
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Types of forecasting techniques:
I. Judgmental Forecasts: Replacement analysis, Succession analysis
II. Statistical Techniques: Markov Analysis, Goal Programming.
1. Replacement Analysis:
Uses replacement charts. They are visual representation of who will replace whom in
the event of a job opening. They are developed to show the names of the current
occupants of the positions and the names of likely replacements. It will provide the
organization with a good estimate of what jobs are likely to become vacant and
indicate if anyone is ready to fill the vacancy.
2. Succession Analysis:
It is similar to replacement except that it is for a longer term and more developmental
and tends to offer greater flexibility.
3. Markov Analysis:
Simple way of predicting the internal supply of labour at a future time. It includes
Transition Matrix .It shows the probability of employees staying in his present jobs ,
moving from one position to another, or leaving the organization for the forecast time
period. When this matrix is multiplied by the number of people beginning the year in
each job the results show how many people are expected to be in each job by the
end of the year. It can identify the Attrition rate, but it can not suggest any solution.
4. Goal Programming:
It is an extension of Markov analysis. The objective is to optimize goals, i.e. a desired
staffing pattern given a set of constraints like the percentage of new recruits, total
salary budget etc.
Job Descriptions/Specifications
Job description: A document that provides information regarding the tasks, duties,
and responsibilities of the job
Job specification: Minimum acceptable qualifications that a person should possess
in order to perform a particular job
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Reasons for Conducting Job Analysis
Staffing
Training and Development
Compensation and Benefits
Safety and Health
Employee and Labour Relations
Legal Considerations
Job Description
Job Identification
Date of the Job Analysis
Job Summary
Duties Performed
Job Specification
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Job Specification
Minimum Acceptable Qualifications:
Educational Requirements
Experience
Personality Traits
Physical Abilities
Strategic Planning
The process by which top management determines overall organizational purposes
and objectives and how they are to be achieved
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Process of Human Resource Planning
Collect information from external and internal environment.
Forecast demand for HR
Forecast supply for HR
Identify HR gap
Action plans
Surplus of Employees
Restricted hiring
Reduced hours
Early retirement
Layoffs
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Succession Planning and Development
Succession planning: Process of ensuring that the qualified person is available to assume
a managerial position once a position is vacant.
Job Design
Process of determining the specific tasks to be performed, the methods used in
performing these tasks, and how the job relates to other work in the organization
Job enrichment: Basic changes in the content and level of responsibility of a job, so
as to provide greater challenge to the worker
Job enlargement: Changes in the scope of a job to provide greater variety to the
worker
Re-engineering
The fundamental rethinking and radical redesign of business processes to achieve
dramatic improvements in critical contemporary measures of performance, such as
cost, quality, service, and speed.
Inputs to Selection
Job Analysis
Human Resource Plans
Recruits
These three inputs largely determine the effectiveness of the selection process.
Orientation, training, development, career planning, performance evaluation,
compensation, are the outputs
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Environmental Factors Affecting the Selection Process
Nature of the organization
Nature of the labor market
Union requirement
Government requirement
Composition of labor force
Location of the organization
Selection Ratio: The number of people hired for a particular job compared to the individuals
in the applicant pool
A selection ratio of 1.00 indicates that there is only one qualified applicant for each
position
A selection ratio of 0.10 indicates that there are ten qualified applicants for each
position
Reception of applicants
The selection process is a two way street. The organization selects employers and
the organization selects employees.
The applicant pool built up through recruitment process I the base for selection
process.
The objective of recruitment is to attract more applicants so that there are more
options available at the selection stage.
Initial Screening
The actual selection process starts with the preliminary screening.
The main purpose is pre-selection and the elimination of applicants who are not
qualified for the job. The procedure has two steps.
1. Screening enquiries: Some applicants can be eliminated based on job
description and job specification. Reasons for elimination can be
inadequate/inappropriate experience, gaps in job history, inappropriate
education.
2. Screening interviews
Application Blanks
The next step is to request the applicants who were successful in the initial screening
to complete an application blank/form. It is form that is completed by the applicant
providing complete information about him. It is highly structured in which questions
are standardized and determined in advance. This information gives an indication of
an applicant s suitability for a job.
Employment tests
It is an instrument which attempts to measure certain characteristic of individual.
These characteristic ranges from manual dexterity to intelligence to personality. It is
frequently used to help identify the candidates with the greatest potential for success
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on the job. The purpose is mainly to predict job success among number of
applicants. It is another screening tool used to gain additional information about
candidates. They assess the match between applicants and job requirements. It is
also used for selecting employees for promotion.
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Aptitude Tests
Aptitude tests measure whether an individual has the capacity or latent ability to learn
a given job if he is given adequate training. The use of test is advisable when the
applicant has had little or no experience along the lines of the job opening.
Aptitude test includes
- General reasoning ability
- Memory
- Vocabulary
- Verbal fluency
- Numerical ability
- Mechanical aptitude tests, psychomotor or skill tests, clerical aptitude test
Work-Sample (Simulation)
Tests that require an applicant to perform a task or set of tasks representative of the
job
Occupational Interests
Indicate the occupation in which a person is most interested and is most likely to be
satisfied with
They are designed to find out the interest of an applicant in the job he has applied for
Primary use has been in counseling and vocational guidance
Personality Tests
They refer to the unique blend of characteristics that define an individual and
determine his pattern of interaction with the environment. They measure the basic
aspects of personality such as motivation, introversion-extroversion, self confidence,
sociability etc. Two types of personality tests are objective tests and projective tests.
Situational Tests
It evaluates individuals in a real life situation by asking them to cope with or solve
critical elements of a real job. They are real combination tests representing elements
of achievement of intelligence, aptitude and personality. E.g. group discussion, in
basket test- simulates key aspects of a job.
Assessment centers
They are designed to measure candidates managerial potential by observing his or
her performance in experimental exercise that simulates managerial work. It is a 2 or
3 day experience in which candidates perform realistic management tasks under
expert guidance. Their potential is thereby assessed.
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Advantages: useful for predicting success in management positions, minimizes the
bias with other selection tools, it measures key variables like leadership initiative and
supervisory skills which can not be measured with other tests, used effectively I
many organizations.
Disadvantages: Very expensive ways of hiring people, some managers use it as a
way to avoid difficult decisions.
Interview Planning
Compare application and resume with job requirements
Develop questions related to qualities sought
Step-by-step plan to present position, company, division, and department
Determine how to ask for examples of past applicant behavior, not what future
behavior might be
Types of Interviews
Unstructured (nondirective)
Structured (directive or patterned)
Problem solving
Stress
Mixed
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Problem solving interview
It focuses on a problem or series of problems that an applicant is expected to solve.
Often these are hypothetical situations and the applicant is asked what should b
done. Both the answer and the approach is used by the applicant is evaluated. This
technique has a narrow scope.
Stress interview
It is a special type of interview designed to create anxiety and put pressure on the
applicant to see how the person responds. The interview consists of a series of harsh
questions asked in rapid succession and in an un friendly manner. Since stress full
situations are usually only part of the job this technique should be used in connection
with other interview formats.
Methods of Interviewing
One-on-one interview - Applicant meets one-on-one with an interviewer
Group interview - Several applicants interact in the presence of one or more
company representatives
Board interview - Several of the firm s representatives interview one candidate
Medical Examination
Physical ability tests are designed to measure physical agility, hand to eye
coordination, as well as general or specific physical ability. Due to high costs the
medical examination is often one of the final steps in the selection process. Many
organizations give common physical exams to all job applicants whereas special
exams are given to only a subset of all applicants.
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Guidelines for assessing physical abilities have been developed that detail the
sensory, perceptual, cognitive physical requirements of most jobs. 9 Police,
firefighting etc) .When applied carefully these requirements are extremely useful in
predicting job performance, worker s compensation claims, and absenteeism. The
commonly used tests are: Strength and fitness testing, drug tests, genetic screening,
medical screening, lie detector test, honesty test etc.
Notification to Candidates
Results should be made known to candidates as soon as possible
Delay may result in firm losing prime candidate
Socialization
Socialization may be defined as a process of adaptation to a new culture of the
organization.
It is a process of indoctrinating the new employees with the organization culture. The
organization takes steps to get them adapt to its existing culture. It socializes the new
employees and moulds them to accept its standards and norms.
Unsuccessful candidates should also be promptly notified
Through this process employees are able to understand the basic values, norms and
customs for becoming accepted members of the organization and assuming
organizational roles. People who do not learn to adjust with the culture of the
organization are labeled as rebels and non conformists and may be turned out of
the organization.
It performs two functions:
1. It creates uniform behavior in members increases understanding reduces
conflicts etc.
2. It reduces ambiguity of the employees as they will come to know what is
expected of them.
Maannen & Schein have conceptualized three stages in the process of socialization:
Prearrival:
It denotes the period of learning in the socialization process that occurs before a new
worker joins the organization. The new worker has a set of values, beliefs, attitudes
and expectations. Such factors must be taken care at the selection stage itself. Only
those people should be selected who might be able to fit in the organizations culture.
The candidates should be told about the organization culture during selection
process in order to avoid wrong selection.
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Encounter:
The new employee enters this stage when he joins the organization. He comes to
know what the organization is like and may find divergence between his expectations
and those of the organization. In such case he must undergo socialization that will
detach him from his previous notions and assumptions about the organization and
make him learn another set the organization deems desirable. If he is not able to
change his expectations and adapt himself to the organization he might have to leave
the organization
Metamorphosis:
The real transformation in the new employee takes adapts to his workgroup s values
and norms and becomes comfortable with the organization and his job. His
internalization of organization s culture wins him acceptability among his colleagues
and creates confidence as a result he feels committed to the organization.
Recruitment:
Recruitment:
The process of attracting individuals on a timely basis, in sufficient numbers, and with
appropriate qualifications, and encouraging them to apply for jobs with an organization.
Purpose of Recruitment:
To determine the organization s present and future recruitment needs in conjunction
with HR planning & job analysis.
To increase the pool of qualified job applicants at minimum cost.
To help increase the success rate of the selection process by reducing the number of
overqualified and under qualified applicants.
To help reduce the probability that applicants once recruited and selected will leave
the organization after a short time.
To increase organizational and individual effectiveness in the short and long run.
To evaluate the effectiveness of various recruitment techniques.
Importance of Recruitment:
Determining the organizations long and short range needs by job title and levels in
the organization.
Staying informed of job market conditions.
Developing effective recruitment material.
Obtaining a pool of qualified applicants.
Developing a systematic program of recruitment in conjunction with other
HR activities
Recording the number and quality of job applicants produced by various sources and
methods of recruiting.
Following up on applicants those hired and not hired in order to evaluate the
effectiveness of recruitment effort.
Accomplishing all of these activities within a legal context.
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Trade Unions
Composition of labour force
Location of organization
Alternatives to Recruitment
Outsourcing
Transfers responsibility to an external provider
Provides greater efficiency and effectiveness
Contingent/Temporary Workers
Part-timers, temporaries, and independent contractors
Staffing companies or independent contractors
Fast growing
Provides greater flexibility and lower labour costs
Human equivalent of just-in-time inventory
Employee Leasing
Off-site human resources department
Puts business owner s employees on their payroll
Leases employees back to company
Charge from 1-4%
Small- and medium-sized firms
Opportunities for job mobility
Loss of employee loyalty
Overtime
Most commonly used method of meeting short-term fluctuations in work
volume
Employer avoids recruitment, selection, and training costs
Employees gain from increased income
Potential problems
De Recruitment:
It is the process of reducing the labour supply within an organization.
The various de recruitment options available are: Firing, Layoffs, Transfers,
Reduced work weeks, Early retirements, Job sharing.
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It improves the recruitment process by giving pertinent and realistic
information about the job to applicants so that he can choose and select jobs
for which he or she is better suited. It helps to achieve job satisfaction and
improve performance in the long run.
Older Individuals
Valuable source of employees
Perform some jobs extremely well
Good work habits
Lower absenteeism rates
Higher levels of commitment
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Should indicate how to respond
Previous experience with various media suggest the approach taken
Certain media attract more homogeneous audiences
Professional groups publish journals
Recruiters
Used with technical, vocational, community colleges, colleges and universities
On-campus recruiting is number one method for snaring students
Director of Student Placement is key campus contact
Company recruiter plays vital role
Videoconferencing system used
Special Events
A single employer or group of employers attempt to attract a large number of
applicants for interviews
Meet a large number of candidates in a short time
Job fairs offer lower cost per hire than traditional approaches
Internships
Places student in a temporary job
Used as a recruiting technique
No obligation to hire student permanently or for student to accept a
permanent position
Typically a temporary job for summer or a part-time job during school year
Students bridge gap from theory to practice
Professional Associations
Recruitment and placement services for members
Society for Human Resource Management operates job referral service
Employee Referrals
Important role in recruitment process
Referrals better qualified and stay on job longer
Recruit new hires through employee referral incentive programs
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Unsolicited Walk-In/Write In Applicants
Reputation of being a good place to work attracts qualified prospects without
extensive recruitment
Well-qualified workers seek specific company
Open Houses
Pair potential hires and managers in warm, casual environment that
encourages on-the-spot job offers
Cheaper and faster than agencies
May attract more unqualified candidates
Event recruiting
Opportunity to create image of company
Attend events where recruits are likely to be
Head Hunters
Tailored to need each firm s needs
Recruitment sources and methods vary according to position being filled
Rehires / Recalls
Analysis of recruitment procedures
Utilization of minorities, women, and individuals with disabilities
Advertising
Employment agencies
Other suggested approaches
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