Mrs.

Nisha Pandey Assistant Professor (Human Resource Management)

UNIT-2
JOB ANALYSIS

Job Analysis is a primary tool to collect job-related data. The process results in collecting and
recording two data sets including job description and job specification. Any job vacancy cannot
be filled until and unless HR manager has these two sets of data

In the words of Edwin B. Flippo, "Job analysis is the process of studying and collecting
information relating to the operations and responsibilities of a specific job "

Job analysis is the process of determining the duties of various positions in an organization and
also the specific KSA’s (Knowledge, Skill, Abilities) required in performing these duties and
hence the characteristics of the employee that is to be hired for that position. The information
collected through job analysis is used to prepare job descriptions and job specifications. Job
Analysis is a process to identify and determine in detail the particular job duties and
requirements and the relative importance of these duties for a given job. Job Analysis is a
process where judgments are made about data collected on a job.
The Job; not the person. An important concept of Job Analysis is that the analysis is
conducted of the Job, not the person. While Job Analysis data may be collected from
incumbents through interviews or questionnaires, the product of the analysis is a description or
specifications of the job, not a description of the person.

The intention behind job analysis is to answer questions such as:

• What is the need of the job to exist?

• What physical and mental activities does the worker undertake?
• When is the job to be performed?
• Where is the job to be performed?
• How does the job perform by an employee?
• What qualities and qualifications are required to perform the job?

Nature of Job Analysis

1. Job analysis is a process of gathering relevant information about various aspects of a job
and is concerned with the identification of tasks required to be performed as part of it.
2. It approaches the task of defining the role, context, conditions, human behavior,
performance standards and responsibilities of a job systematically.
3. It helps in establishing the job’s worth to an organization. In other words, it measures the
value and contribution of a job to the growth of the organization.
4. It establishes job relatedness, which is a crucial input for HR decisions involving
recruitment, selection, compensation, training, health and safety.
 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

5. It facilitates the process of understanding the impact of environmental changes on

individual jobs.
Uses of Job Analysis

1-Provide Base for different jobs

Job analysis provides the base for identifying the contents of different jobs, their
interrelationship and interdependence, responsibility involved in a job, and authority that may
be required to perform the job.

2-Help in organizational design.

Job analysis provides all the required information to get the framework of organizational
design. Organizational design is building a network ofrelationships among various functions
and positions. In organizational design various jobs to be performed are identified and grouped
together on the basis of similarity. This process can only be done with the help of job analysis.

3-Human resource planning

Job analysis proves to be of great help in case of Human Resource Planning by providing
information for forecasting human resource needs in terms of knowledge, skills and
experience. Job analysis also helps in planning for promotions and transfers by showing
relationships among different jobslaterally as well as vertically.

4-Recruitment and selection

Job analysis provides the basic ingredient required for recruitment and selection. It is well
understood that recruitment and selection, taken together,is a process of identifying the source
from where the personnel can be hired, motivating them, analyzing them and selecting the
ones who match the concerned job.
We can say that matching jobs and individuals is the whole process of recruitment and
selection. And both the types of information in the form of job description and job specification
are provided through job analysis.

5-Orientation and placement

Job analysis also helps in orientation and placement by providing complete information about
job requirements. It further helps when an individual is selected to perform number of jobs and
not a specific job.

6-Career planning
Job analysis helps in career planning by providing information about the opportunities in terms
of career paths and jobs availability in theorganization with the help of this information, both
individuals and organization are able to chart out their plan for career planning and
development.

7-Training
Job analysis provides valuable information to identify training and development need of
various individuals. It is obvious that training and development needs can only be determined
 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

by job analysis. It is very important for every organization to put its endeavor in the form of
training and development so that the individuals are equipped to meet the requirements of their
jobs.

8-Job evaluation
Job analysis plays an important role in evaluating the job and compensatingit according to its
worth in comparison to other jobs in an organization. The worth of a job is determined on the
basis of job characteristics and job- holder characteristics. Job analysis provides both in the
forms of Job Description and Job Specification.

9-Performance appraisal
Job analysis helps in evaluating the performance of an individual in the organization.
Performance appraisal is done by comparing the individual’s actual job performance with what
is expected of him and job analysis decides what is expected of an employee and hence, it
helps in determining performance standards against which the actual job performance is
measured.

10-Employee safety
Job analysis helps in taking precautions to save the employees from the hazardous
environmental and operational conditions in various jobs. It is obvious that all such kind of
information related to a particular job will be provided by job analysis.

11-Counseling
Job analysis also helps in providing counseling to employees in different areas. Sometimes,
employees are unable to bear the stress of a particular job, then they are advised to opt for
another job, but this is only possible with theinformation provided by job analysis.

Outcomes of job analysis

1)Job description 2) Job specification
 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

1-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 etc.
2-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.

Process of Job Analysis

1-Strategic Choices- To initiate the process of job analysis, an organization has to make
strategic choices such as to what extent it will involve employees in the process, what will be
the timing and frequency of process? Will it be future oriented or past oriented etc.

2-Gather Information- gathering information involves three issues:

i-What type of data is to be collected?

ii-What methods are to be employed for data collection?
iii-Who should collect these data?

3-Information Processing- To prepare job description and job specification, collected data
should be processed properly. Relevant Data should be sorted out from the collected information
so that they can fulfill the purpose of creating job description and job specification.

4-Job Description- After processing all data, Job description has to be prepared. Job description
includes job title, tasks, duties and responsibilities involved in a job. In brief, It indicates what
all job involves.
 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

5-Job Specification- On the other hand, job specification involves listing of employee
qualifications, skills and abilities. These specifications needed to do the job satisfactorily.

Purpose of Job Analysis

1-Recruitment and Selection: Job Analysis helps in determining what kind of person is
required to perform a particular job The objective is to fit a right person at a right place.

2-Performance Analysis: Job analysis is done to check if goals and objectives of a particular
job are met or not. It helps in deciding the performance standards, evaluation criteria and
individual’s output.

3-Training and Development: Job Analysis can be used to assess the training and development
needs of employees. The difference between the expected and actual output determines the level
of training that need to be imparted to employees.

4-Compensation Management: Of course, job analysis plays a vital role in deciding the pay
packages and extra perks and benefits and fixed and variable incentives of employees.

5-Job Designing and Redesigning: It helps in designing, redesigning, enriching, evaluating

and also cutting back and adding the extra responsibilities in a particular job.

Job Analysis Methods

 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

1-Observation Method: A job analyst observes an employee and records all his performed and
non-performed task, fulfilled and un-fulfilled responsibilities and duties, methods, ways and
skills used by him or her to perform various duties and his or her mental or emotional ability to
handle challenges and risks.

2-Interview Method: In this method, an employee is interviewed so that he or she comes up

with their own working styles, problems faced by them, use of particular skills and techniques
while performing their job and insecurities and fears about their careers.

3-Questionnaire Method: Another commonly used job analysis method is getting the
questionnaires filled from employees, their superiors and managers. However, this method also
suffers from personal biasness. A great care should be takes while framing questions for
different grades of employees.

Job Design
Definition of Job Design:
Job design is defined as a process of describing a job in terms of its duties and responsibilities;
the methods to be used in carrying out the job in terms of techniques, systems, and procedures;
and the relationship that should exist between the job holders and their superiors, subordinates,
and colleagues.
Job Design is the process of Work arrangement (or rearrangement) aimed at reducing or
overcoming job dissatisfaction and employee alienation arising from repetitive and mechanistic
tasks. Through job design, organizations try to raise productivity levels by offering non-
monetary rewards such as greater satisfaction from a sense of personal achievement in meeting
the increased challenge and responsibility of one’s work. Job enlargement, job enrichment, job
rotation, and job simplification are the various techniques used in a job design exercise.

Although job analysis, as just described, is important for an understanding of existing jobs,
organizations also must plan for new jobs and periodically consider whether they should revise
existing jobs. When an organization is expanding, supervisors and human resource professionals
must help plan for new or growing work units. When an organization is trying to improve quality
or efficiency, a review of work units and processes may require a fresh look at how jobs are
designed to design jobs effectively, a person must thoroughly understand the job itself (through
job analysis) and its place in the larger work unit’s work flow process (through work flow
analysis). Having a detailed knowledge of the tasks performed in the work unit and in the job,
a manager then has many alternative ways to design a job.

Job design follows job analysis i.e., it is the next step after job analysis.
Job design is the process of:

(a) Deciding the contents of the job.

(b) Deciding methods to carry out the job.
(c) Deciding the relationship which exists in the organization.
 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

Nature of Job Design

The main goal of designing a job are as follows:

i. Facilitating the interest of employees towards the job and enhancing their satisfaction
ii. Increasing employee motivation and productivity
iii. Enhancing employees’ skills by identifying their training needs
iv. Covering the modern needs of employee participation
v. Ensuring safer working environment
vi. Making the communication process clear and effective in the organization
vii. Improving the quality of working life of employees
viii. Eliminating the unnecessary levels of supervision, checking, and control
ix. Establishing high-level standards for customer service
x. Minimizing cost by reducing wastage.

Various aspects/methods of job design

 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

1. Job Simplification
The Job Simplification means breaking the job into relatively easier sub-parts with the
intention to enhance the individual’s productivity by minimizing the physical and mental efforts
required to perform a complex job.
Work or job simplification is the process of removing tasks from existing roles in order to make
them more focused. The objective of work simplification is to develop improved work methods
that maximize output while minimizing expenditure and cost. Let's look at an example of job
simplification at work. Here the jobs are simplified or specialised. A given job is broken down
into small sub-parts and each part is assigned to one individual. Job simplification involves (i)
Mechanical processing of work; (ii) Repetitive work process (assembly lines); (iii) Working on
only one part of a product; (iv) Predetermining tools and techniques; (v) Few skill requirements.
Work simplification is done so that less-trained and the less paid employees can do these jobs.
This method has limitations. Over simplification results in boredom which lead in turn to errors.
2. Job Rotation:
Job rotation involves shifting a person from one job to another, so that he is able to understand
and learn what each job involves. The company tracks his performance on every job and decides
whether he can perform the job in an ideal manner. Based on this he is finally given a particular
posting.
Job Rotation is a management approach where employees are shifted between two or more
assignments or jobs at regular intervals of time in order to expose them to all verticals of an
organization. It is a pre-planned approach with an objective to test the employee skills and
competencies in order to place him or her at the right place. In addition to it, it reduces the
monotony of the job and gives them a wider experience and helps them gain more insights.
Job rotation is a well-planned practice to reduce the boredom of doing same type of job everyday
and explore the hidden potential of an employee. The process serves the purpose of both the
management and the employees. It helps management in discovering the talent of employees
and determining what he or she is best at. On the other hand, it gives an individual a chance to
explore his or her own interests and gain experience in different fields or operations.
3. Job Enlargement:
Job enlargement is another method of job design when any organization wishes to adopt proper
job design it can opt for job enlargement. Job enlargement involves combining various activities
at the same level in the organization and adding them to the existing job. It increases the scope
of the job. It is also called the horizontal expansion of job activities.
It is the process of increasing the scope of a job by adding more tasks to it. The related tasks are
combined. Job enlargement involves expanding the number of tasks or duties assigned to a given
job. Job enlargement therefore, naturally is opposite to work simplification. Adding more tasks/
duties to a job does not mean that new skill and abilities are needed to perform it. There is only
a horizontal expansion.
Job enlargement reduces monotony and boredom. It helps to increase interest in work and
efficiency. But there is no time increase of the job. Enlarged jobs require longer training period
as there are more task to be learned.
 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

4. Job Enrichment:
Job enrichment is a term given by Fredrick Herzberg. According to him, a few motivators are
added to a job to make it more rewarding, challenging and interesting. According to Herzberg,
the motivating factors to an existing job to make it more interesting.
It involves designing a job in such a way that it provides the workers greater autonomy for
planning and controlling his own performance. It seeks to improve tasks, efficiency and human
satisfaction by building into people’s jobs, greater scope for personal achievement and
recognition, more challenging and responsible work and more opportunity for individual
advancement. The advantages here are that, Job enrichment benefits employees and
organisation in terms of increased motivation, performance, job satisfaction, job involvement
and reduced absentees.

Further an enriched job shall meet certain psychological needs of job holders (Identity
achievement) etc. Job enrichment is motivating and satisfying as it adds status to one’s job.
Empowerment, a by-product of job enrichment, gives the employees a sense of ownership and
control over their job.

The motivating factors can be:

(a) Giving more freedom.
(b) Encouraging participation.
(c) Giving employees the freedom to select the method of working, etc.

Human Resource Planning (HRP)

Human Resource Planning (HRP) is the process of forecasting the future human resource
requirements of the organization and determining as to how the existing human resource
capacity of the organization can be utilized to fulfill these requirements. It, thus, focuses on the
basic economic concept of demand and supply in context to the human resource capacity of the
organization.
 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

It is the HRP process which helps the management of the organization in meeting the future
demand of human resource in the organization with the supply of the appropriate people in
appropriate numbers at the appropriate time and place. Through planning a management strives
to have the right number and the right kind of people at the right places, at the right time to do
things which result in both the organization and the individual receiving the maximum long-
range benefit.”
Dale S. Beach has defined it as “a process of determining and assuring that the organization
will have an adequate number of qualified persons available at the proper times, performing
jobs which meet the needs of the enterprise and which provide satisfaction for the individuals
involved.”
In the words of Leon C. Megginson, human resource planning is “an integration approach to
perform the planning aspects of the personnel function in order to have a sufficient supply of
adequately developed and motivated people to perform the duties required to meet
organizational objectives and satisfy the individual’s needs and goals of organizational
members
According to E.W. Vetter, human resource planning is “the process by which a management
determines how an organization should make from its current manpower position to its desired
manpower position.

Features Of Human Resource Planning

1. Goal-Oriented
HR planning is a goal-oriented process which helps to supply right people for the right job to
meet the goals and objectives of the organization.

2. Future-Oriented
Human resource planning helps to determine the future need of manpower. So, it is futuristic
by nature.

3. Continuous Process
HR planning is a continuous and on-going process till the termination of the organization.

4. Effective Utilization of Manpower

HR planning ensures proper utilization of human resources according to their skill and
capabilities as per the requirement of the organization.

5. Demand and Supply of Manpower

Human resource planning helps to determine the demand and supply of human resources and
adjusts optimum level of manpower in the company or organization.

6. Dynamic Process
HR planning is a dynamic process which is updated and revised according to the need of the
organization.
 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

7. Linked to Corporate Plan

Human resource planning is directly linked with corporate plans. So, it is formulated at all levels
of management.

8-Well Defined Objectives

Enterprise’s objectives and goals in its strategic planning and operating planning may form the
objectives of human resource planning. Human resource needs are planned on the basis of
company’s goals. Besides, human resource planning has its own objectives like developing
human resources, updating technical expertise, career planning of individual executives and
people, ensuring better commitment of people and so on.
9-Determining Human Resource Reeds
Human resource plan must incorporate the human resource needs of the enterprise. The thinking
will have to be done in advance so that the persons are available at a time when they are required.
For this purpose, an enterprise will have to undertake recruiting, selecting and training process
also.

10-Keeping Manpower Inventory

It includes the inventory of present manpower in the organization. The executive should know
the persons who will be available to him for undertaking higher responsibilities in the near
future.
11-Adjusting Demand and Supply
Manpower needs have to be planned well in advance as suitable persons are available in future.
If sufficient persons will not be available in future, then efforts should be. made to start
recruitment process well in advance. The demand and supply of personnel should be planned in
advance.
12-Creating Proper Work Environment
Besides estimating and employing personnel, human resource planning also ensures that
working conditions are created. Employees should like to work in the organization and they
should get proper job satisfaction

Benefits Of Human Resource Planning

1-Recruiting
Human resource departments are usually responsible for recruiting new employees when
positions are created or vacant. Recruiting and selecting employees is a time-consuming
process that involves advertising for the open position, managing the application process,
interviewing prospective candidates, and making job offers. Effective HR planning helps the
company to prepare ahead of time for these vacancies rather than acting in a reactionary manner
when an employee resigns unexpectedly. Another benefit of having a recruiting plan in place
is that the recruiters know where to target their job search to find the best candidates. Successful
recruiters plan ahead and know what skill sets (hard and soft) are essential for the right
candidates, and they know how to interview effectively. Companies that include HR planning
are prepared for future open positions that result from business growth and expansion.
 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

2-Career Development
Another benefit of HR planning is having career-development procedures, which consist of
identifying future company leaders and helping them grow. This means that when an executive
or manager leaves or retires, there is already someone ready to promote into the position.
Retention is an important factor in successful companies because it means that promotions come
from within the organization and current employees are motivated to work harder to get ahead.
Career development also looks at cross-training opportunities and has career-path plans in place.
3-Training
Successful HR planning includes training models and procedures. This training includes new-
hire training to teach new employees about the company culture, internal databases, software,
and the skill sets necessary for specific positions. The benefit of this type of training is that all
employees are taught the same thing in the same manner, which creates consistency and
accuracy in daily work. Other training models include information about new company
initiatives, new product roll outs, and career progression classes. For example, if an employee
has been successful in his current role, training may include coaching or management classes
that will help him prepare for a future promotion.
4-Employee Management
Effective HR planning incorporates aspects of employee management, such as performance
reviews and disciplinary procedures. Companies benefit from having these systems in place
because they help managers do their jobs and prevent potential lawsuits. Standardized
performance reviews help managers look for key items when reviewing and ranking
subordinates and ensure that everyone is reviewed on the same scale. Standardized disciplinary
procedures ensure that the rules are followed and they clearly identify their consequences when
they are broken.
5-Assessing Future Personnel Needs:
It requires an organization to consider things such as turnover and anticipated growth. This
process allows the organization to determine accurate hiring goals.
6-Investment Perspective:
It is an investment in your organization. It does take money to hire and retain HR staff, but
trying to operate without a functional HR department would cost much more in the long run.
7-Employee Turnover:
Turnover is stressful for an entire company. Proper HR planning can greatly reduce this stress
by anticipating turnover before it happens, leading to more continuous and consistent staffing.

8. Assessing Future Personnel Needs:

Whether it is surplus labour or labour shortage, it gives a picture of defective planning or
absence of planning in an organization. A number of organizations, especially public sector
units (PSUs) in India are facing the problem of surplus labor. It is the result of surplus labour
that the companies later on offer schemes like Voluntary Retirement Scheme (VRS) to eliminate
surplus staff. Thus, it is better to plan well about employees in advance. Through HRP, one can
ensure the employment of proper number and type of personnel.
 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

9. Foundation for Other HRM Functions:

HRP is the first step in all HRM functions. So, HRP provides the essential information needed
for the other HRM functions like recruitment, selection, training and development, promotion,
etc.
10. Coping with Change:
Changes in the business environment like competition, technology, government guidelines,
global market, etc. bring changes in the nature of the job. This means changes in the demand of
personnel, content of job, qualification and experience needed. HRP helps the organization in
adjusting to new changes.
11. Investment Perspective:
As a result of change in the mindset of management, investment in human resources is viewed
as a better concept in the long run success of the enterprise. Human assets can increase in value
as opposed to physical assets. Thus, HRP is considered important for the proper planning of
future employees.
12. Expansion and Diversification Plans:
During the expansion and diversification drives, more employees at various levels are needed.
Through proper HRP, an organization comes to know about the exact requirement of personnel
in future plans.

13. Employee Turnover:

Every organization suffers from the small turnover of labour, sometime or the other. This is
high among young graduates in the private sector. This necessitates again doing manpower
planning for further recruiting and hiring.

14. Conformity with Government Guidelines:

In order to protect the weaker sections of the society, the Indian Government has prescribed
some norms for organizations to follow. For example, reservations for SC/ST, BC, physically
handicapped, ex-servicemen, etc. in the jobs. While planning for fresh candidates, HR manager
takes into consideration all the Government guidelines.

15. International Expansion Strategies:

International expansion strategies of an organization depend upon HRP. Under International
Human Resource Management (IHRM), HRP becomes more challenging. An organization
may want to fill the foreign subsidiary’s key positions from its home country employees or
from host-country or from a third country. All this demands very effective HRP.

16. Having Highly Talented Manpower Inventory:

Due to changing business environment, jobs have become more challenging and there is an
increasing need for dynamic and ambitious employees to fill the positions. Efficient HRP is
needed for attracting and retaining well qualified, highly skilled and talented employees.
 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

Process/Steps in Human Resource Planning

(OR)

1. Analyzing Organizational Objectives:

The objective to be achieved in future in various fields such as production, marketing, finance,
expansion and sales gives the idea about the work to be done in the organization.

2. Inventory of Present Human Resources:

From the updated human resource information storage system, the current number of
employees, their capacity, performance and potential can be analyzed.

3. Forecasting Demand and Supply of Human Resource:

The human resources required at different positions according to their job profile are to be
estimated. The available internal and external sources to fulfill those requirements are also
measured
 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

4. Estimating Manpower Gaps:

Comparison of human resource demand and human resource supply will provide with the
surplus or deficit of human resource. Deficit represents the number of people to be employed,
whereas surplus represents termination.

5. Formulating the Human Resource Action Plan:

The human resource plan depends on whether there is deficit or surplus in the organization.
Accordingly, the plan may be finalized either for new recruitment, training, interdepartmental
transfer in case of deficit of termination,

6. Monitoring, Control and Feedback:

It mainly involves implementation of the human resource action plan. Human resources are
allocated according to the requirements, and inventories are updated over a period. The plan is
monitored strictly to identify the deficiencies and remove it.

Forecasting human resource demand

Forecasting human resource demand is the process of estimating the future human resource
requirement of right quality and right number. Potential human resource requirement is to be
estimated keeping in view the organization’s plans over a given period of time.

Human Resource Demand Forecasting depends on several factors, some of which are given
below.

• Employment trends;
• Replacement needs;
• Productivity;
• Absenteeism; and
• Expansion and growth.
 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

Forecasting Techniques

There are number of techniques of estimating/forecasting human resources demand:

(a) Managerial Judgement
(b) Work Study Technique
(c) Ratio-trend Analysis
(d) Econometric Models
(e) Delphi Model.
(f) Regression Analysis.
(g) Other Techniques.

1-Ratio-trend Analysis
This is the quickest HR forecasting technique. The technique involves studying past ratios, say,
between the number of workers and sales in an organization and forecasting future ratios.
2-Regression Analysis
This is similar to ratio-trend analysis in that forecast is based on the relationship between sales
volume and employee size.
3-Work-study Techniques
Work-study techniques can be used when it is possible to apply work measurement to calculate
length of operations and the amount of labor required.
4-Delphi Techniques
It solicits estimates of personnel needs from a group of experts, usually managers. The human
resource planning (HRP) experts act as intermediaries, summarize the various responses and
report the findings back to the experts.
5-Executive Judgment:
Executive or Managerial Judgment method is the most suitable for smaller enterprises because
they do not afford to have work study technique. Under this method the executives sit together
and determine the future manpower requirements of the enterprise and submit the proposal to
the top management for approval.

6-Econometrics Models:
These models are based on mathematical and statistical techniques for estimating future
demand. Under these models’ relationship is established between the dependent variable to be
predicted (e.g. manpower/human resources) and the independent variables (e.g., sales, total
production, work-load, etc.). Using these models, estimated demand of human resources can be
predicted.
7-Other Techniques:
The other techniques of Human Resources demand forecasting are specified as under:
(a) Following the techniques of demand forecasting of human resources used by other similar
organisations
(b) Organisation-cum-succession-charts
(c) Estimation based on techniques of production
(d) Estimates based on historical records
(e) Statistical techniques e.g., co-relation and regression analysis.
 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

HR Supply Forecasting
Human Resource supply forecasting is the process of estimating availability of human resource
followed after demand for testing of human resource.
Human Resource supply forecasting is the process of estimating availability of human resource
which is followed by demand forecasting. For forecasting supply of human resource we need to
consider internal supply and external supply of human resources.
For forecasting supply of human resource, we need to consider internal and external supply.
Internal supply of human resource available by way of transfers, promotions, retired employees
& recall of laid-off employees, etc. Source of external supply of human resource is availability
of labor force in the market and new recruitment.
External supply of human resource depends on some factors mentioned below-

• Supply and demand of jobs.

• literacy rate of nation.
• rate of population
• industry and expected growth rate and levels
• technological development.
• compensation system based on education, experience, skill and age.

Methods of Forecasting HR Supply

1-Trend Analysis
2-Competency Model
3-Replacement Charts
4-Staffing table
5-Succession Planning
6 Flow Modeling/Markov Analysis

1-Trend Analysis – Trend analysis involves collecting and evaluating data to identify patterns
of information that might impact future.

• Trend analysis involves collecting and evaluating data to identify patterns of information
that might impact the future.
• By examining the trends of the past, the HR department can predict the effect of the same
activity on the future of the organization, because it is assumed that these patterns will
remain stable.
• A method of forecasting that assumes past trends and ratios in employee movement are
stable and indicative of future trends and ratios in employee movement.
• One of the simplest methods of forecasting future HR supply. For example, an
organization reviewing historical data may realize that every year, approximately five
percent of their staff retire, six percent resign, and three percent are dismissed.
• Using a simple trend analysis, future HR supply forecasts can be established by assuming
an average reduction in internal HR supply of 14 percent per year
 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

2- Competency Model – It focuses on matching right skills or competencies needed for each
job with the skills available within the organization. Competencies are behaviors that encompass
the knowledge, skills, and attitudes (KSA) required for successful performance.

Competency modeling is the activity of determining the specific competencies that are
characteristic of high performance and success in a given job.

A future-oriented model that first reviews competencies that are aligned with an organization’s
mission, vision, and strategy, and then aims to identify an ideal workforce in terms of these
competencies.

Skills/competency models focus on matching the right skills or competencies needed for each
job with the skills available within the organization.

3-Replacement Chart – This chart shows provide identification of potential replacements for
vacancies within the organization. A chart used to estimate vacancies in higher level jobs and
identify how potential HR supply can fill these vacancies via internal movements from lower
levels jobs.

Replacement charts provide identification of potential replacements for vacancies within an

organization. A comprehensive replacement chart will include information regarding possible
replacements for vertical or horizontal movement.

Generally, a replacement chart includes information about employees’ performance, readiness

to fill the position, and education.

Estimating Internal Labor Supply for a Given Unit

 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

Factors Affecting Human Resource Planning of an Organisation

1-Type of organization:
The type of organization determines the production process and number and type of staff
needed. Manufacturing organizations have a more complex structure compared to service
organization. It goes without saying that the HRP differs according to the nature of the
organization.

2-Strategy of organization:
The human resource needs of an organization depend on the strategic plan adopted by it. For
example, growth of the business calls for hiring of additional labor, while mergers will need a
plan for layoffs.

3-Environmental Uncertainties:
Political, social and economic changes affect all organizations. Personnel planners deal with
environmental uncertainties by carefully formulating recruitment, selection, and training and
development policies and programmers.

4-Time period:
Yet another major factor affecting personnel planning is the time horizon. On one hand, there
are short-term plans spanning six months to one year. On the other hand, there are long-term
plans which spread over three to twenty years. This affects the manpower planning.

5-Information:
The type and quality of information used in making forecast is an important factor influencing
Human Resource Planning. In the absence of a well-developed information mechanism Human
Resource Planning is just impossible. Accurate and timely human resource information system
helps in getting better quality personnel.
 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

6-Nature of jobs being filled:

Job vacancies are very common and arise due to promotions, retirements, termination of
services, growth, expansion, etc. HRP is required to ensure that suitable candidates are recruited.

7-Off-loading:
This implies giving part of the organizations work to outside parties. If an organization prefers
off-loading to recruitment of more people. Human Resource Planning is not required.

Employee hiring
Hiring employees is a process crucial to the success of a business, and as most successful small
business owners know, the hiring process does not begin with the interview and end with the
job offer. Rather, it involves planning and considering the job prior to an interview, recruiting
and interviewing wisely to bring in the right person, and providing new workers with an
orientation that enables them to get off to a strong start with the company.

Recruitment is the process of finding and hiring the best-qualified candidate from within or
outside of an organization for a job opening in a timely and cost-effective manner

In the words of Edwin Flippo, ‘recruitment is the process of searching for prospective
employees and stimulating them to apply for jobs in the organization’.
In short, it involves attracting and obtaining as many applications as possible from eligible job
seekers.

Nature of Recruitment
1. Determine the present and future requirements of the organization on conjunction with its
personnel planning and job analysis activities.
2. Increase the pool of job candidates at minimum cost.
3. Help increase the success rate of the selection process by reducing the number of visibly under
qualified or overqualified job applicants.
4. Help reduce the probability that job applicants, once recruited and selected, will leave the
organization only after a short period of time.
5. Meet the organization’s legal and social obligations regarding the composition of its work force.
6. Begin identifying and preparing potential job applicants who will be appropriate candidates.
7. Increase organizational and individual effectiveness in the short term and long term.
8. Evaluate the effectiveness of various recruiting techniques and sources for all types of job
applicants.
 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

Stages for Recruitment in Human Resources

There are several important stages that most organizations use when recruiting employees. The
recruitment stages include:

• Job analysis: From the job analysis, the representative needs to build a job description,
which describes the essential duties of the job. The representative also needs to set
minimum qualifications, and define a salary range.

• Advertise the open position: The search begins for applicants through networking,
advertising, or other search methods in order to find applicants who match the job
requirements.

• Screening applicants: Screening involves testing skills and/or personalities. It also

includes the assessment of the applicant's motivation and their fit with organizational
requirements through the interview process.
•
• Finalizing the job offer: The job is offered to the applicant.

Sources Of Recruitment

1. Internal Sources of Recruitment

(a) Promotions
The promotion policy is followed as a motivational technique for the employees who work hard
and show good performance. Promotion results in enhancements in pay, position, responsibility
and authority.
 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

(b) Retirements
The retired employees may be given the extension in their service in case of non-availability of
suitable candidates for the post.

(c) Former employees

Former employees who had performed well during their tenure may be called back, and higher
wages and incentives can be paid to them.

(d) Transfer
Employees may be transferred from one department to another wherever the post becomes
vacant.

(e) Internal advertisement

Through internal advertisement, the existing employees working in the company can come
across the vacant job position and they can apply for that position.

Benefits of Internal Sources of Recruitment

(i) The existing employees get motivated.

(ii) Cost is saved as there is no need to give advertisements about the vacancy.

(iii) It builds loyalty among employees towards the organization.

(iv) Training cost is saved as the employees already know about the nature of job to be
performed.

(v) It is a reliable and easy process.

2. External Sources of Recruitment

(a) Press advertisement
A wide choice for selecting the appropriate candidate for the post is available through this
source. It gives publicity to the vacant posts and the details about the job in the form of job
description and job specification are made available to public in general.

(b) Campus interviews

It is the best possible method for companies to select students from various educational
institutions. It is easy and economical. The company officials personally visit various institutes
and select students eligible for a particular post through interviews. Students get a good
opportunity to prove themselves and get selected for a good job.

(c) Placement agencies

 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

A databank of candidates is sent to organizations for their selection purpose and agencies get
commission in return.

(d) Employment exchange

People register themselves with government employment exchanges with their personal details.
According to the needs and request of the organization, the candidates are sent for interviews.

(e) Walk in interviews

These interviews are declared by companies on the specific day and time and conducted for
selection.
(f) E-recruitment
Various sites such as jobs.com, naukri.com, and monster.com are the available electronic sites
on which candidates upload their resume and seek the jobs.
(g) Competitors
By offering better terms and conditions of service, the human resource managers try to get the
employees working in the competitor’s organization.

Benefits of External Sources of Recruitment

(i) New talents get the opportunity.

(ii) The best selection is possible as a large number of candidates apply for the job.

(iii) In case of unavailability of suitable candidates within the organization, it is better to select
them from outside sources.

SELECTION
The selection process can be defined as the process of selection and shortlisting of the right
candidates with the necessary qualifications and skill set to fill the vacancies in an organization.

Employee Selection is the process of picking or choosing the right candidate, who is most
suitable for a vacant job position in an organization. In others words, selection can also be
explained as the process of interviewing the candidates and evaluating their qualities, which are
required for a specific job and then choosing the suitable candidate for the position.The selection
of a right applicant for a vacant position will be an asset to the organization, which will be
helping the organization in reaching its objectives.

Selection refers to choosing the right candidate, who is most suitable for a job position that is
vacant in an organization. It includes the process of interviewing the candidates and evaluating
their skills, qualities, which are needed for a specific job. This is the process of selecting the
appropriate candidate for the organization. It is a negative action because in this candidate are
rejected and most suitable candidates are selected.
In other words, we can say that selection helps eliminate the candidates who are lacking in
knowledge, skills, and ability to do that particular work.
 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

Definition of Selection
“Selection is the process of choosing from the candidates, from within the organization or
from outside, the most suitable person for the current position or for the future positions.” -
Harold Koontz
“Selection process is a managerial decision-making process as to predict which job applicants
will be successful if hired.” -David and Robbins

SELECTION PROCESS

1-Preliminary Interview
The screening interview/preliminary interview in which candidates are eliminated from the further
selection process who do not reach the eligibility criteria prescribed by the organization. On the
other side, we can say that unsuitable candidates rejected before proceeding with the next selection
process. This is a very general and basic interview conducted so as to eliminate the candidates who
are completely unfit to work in the organization. This leaves the organization with a pool of
potentially fit employees to fill their vacancies.

2-Receiving Applications

When the individual qualifies for the preliminary interview, he is required to fill in the
application form according to given format. These involved the data related to the age,
qualification, experience, etc. of the candidate which helps the interviewer to get an idea about
the candidate.
 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

Potential employees apply for a job by sending applications to the organization. The application
gives the interviewers information about the candidates like their bio-data, work experience,
hobbies and interests.

3-Screening Applications

After getting the applications these are screened by the screening committee, who then prepare a
list of those applicants whom are appropriate for the interviews. Once the list is made, the
qualified candidates are called for the interview by telephonically, e-mail, SMS.
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.

4-Employment Tests
Mental ability and skill set of an individual is checked in this step, Such as intelligence tests,
aptitude tests, psychological tests, personality tests, etc. Suitability of the candidate for the job is
checked by these tests. Before an organization 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.

5-Employment Interview
In this step the interviewer asks questions from the applicant to discover more about candidate.
By taking an interview, it is easier for the employer/ management to understand the candidate’s
expectations from the job. The next step in the selection process is the employee interview.
Employment interviews are done to identify a candidate’s skill set and ability to work in an
organization in detail.
6-Checking References
These reference checks help the interviewer understand the conduct, the attitude, and the behavior
of the candidate as an individual and also as a professional.
To cross-check the authenticity of the information provided by the candidate, the employer asks
some questions from the references given by the candidates. These references may be from the
education institute from where the candidate has completed his education or from his previous
employment where he was worked before.
7-Medical Examination
Physical and Mental ability of the candidate are checked to ensure that he is able to performing the
job or not. Thus, the medical examination is an integral step in the selection process because it
helps in discover the applicant’s physical ability to fulfill the job requirements. Medical
examination is a process, in which the physical and the mental fitness of the applicants are checked
to ensure that the candidates are capable of performing a job or not.
 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

8-Final Selection
Finally, the candidate is selected who clears the all steps of interview. Thus, the selection is a
lengthy process because it includes several stages that an individual has to qualify before getting
selected for the job. The final selection is the final process which proves that the applicant has
qualified in all the rounds of the selection process and will be issued an appointment letter.

Difference between Recruitment and Selection

Basis Recruitment Selection

Meaning It is an activity of establishing contact It is a process of picking up more

between employers and applicants. competent and suitable employees.

Objective It encourages large number of It attempts at rejecting unsuitable

Candidates for a job. candidates.

Process It is a simple process. It is a complicated process.

Hurdles The candidates have not to cross over Many hurdles have to be crossed.
many hurdles.

Approach It is a positive approach. It is a negative approach.

Sequence It proceeds selection. It follows recruitment.

Economy It is an economical method. It is an expensive method.

Time Less time is required. More time is required.

Consuming
 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

Recent Trends in Recruitment

The following are the latest and current trends are being seen in recruitment-

1-Outsourcing
A company may draw required personnel from outsourcing firms. The outsourcing firms
help the organization by the initial screening of the candidates according to the needs of the
organization and creating a suitable pool of talent for the final selection by the organization.
Outsourcing firms develop their human resource pool by employing people for them and
make available personnel to various companies as per their needs. In turn, the outsourcing
firms or the intermediaries charge the organizations for their services.

Advantages of outsourcing are-

Know the Internal Sources of Recruitment.

• Company need not plan for human resources much in advance.

• Value creation, operational flexibility and competitive advantage
• Turning the management’s focus to strategic level processes of HRM
• Company is free from salary negotiations, weeding the unsuitable resumes/candidates.
• Company can save a lot of its resources and time

2) Poaching/Raiding
“Buying talent rather than developing it) is the latest mantra being followed by the organizations
today.
Poaching means employing a competent and experienced person already working with another
reputed company in the same or different industry; the organization might be a competitor in
the industry. A company can attract talent from another firm by offering attractive pay packages
and other terms and conditions, better than the current employer of the candidate.

3) E-Recruitment
Many big organizations use Internet as a source of recruitment. E- recruitment is the use of
technology to assist the recruitment process. They advertise job vacancies through worldwide
web. The job seekers send their applications or curriculum vitae i.e., CV through e mail using
the Internet. Alternatively, job seekers place their CVÂ’s in worldwide web, which can be
drawn by prospective employees depending upon their requirements.

Advantages of E-recruitment are:

• Low cost.
• No intermediaries
• Reduction in time for recruitment.
• Recruitment of right type of people.
• Efficiency of recruitment process.
 Mrs. Nisha Pandey Assistant Professor (Human Resource Management)

4-Social recruiting
Social recruiting is using social media channels for recruiting. The term refers to different
ways of using social media networks (such as Facebook, Twitter, LinkedIn etc.) and websites
(blogs, forums, job boards and websites like Glassdoor for example) to find, attract and hire
talent.

5) Employee referrals
Employee referral programs are definitively one of the most productive ways of hiring talent
and filling open positions. Employee referral is a structured program that companies and
organizations use to find talented people by asking their existing employees to recommend
candidates from their existing networks.

6 ) Go Mobile
To make the selection process more efficient and effective, you should chat and interact with
them on a mobile device. Make this a part of your recruiting strategy and speed up your
recruiting process.