UNIT - 2

a. Importance of Human Resource Planning

Definition:

● E.W. Vetter: HR Planning is a process to move from the current to

the desired manpower position, ensuring the right number and kind of
people are in the right places at the right times.
● Robbins and Coulter: HR Planning ensures having the right number
and kind of capable people in the right places at the right times.
● K. Aswathappa: HR Planning is forecasting future demand and
supply of the right type and number of people.

Importance of HR Planning:

1. Increasing Productivity:
○ HR Planning enhances productivity by optimizing resource use,
reducing waste, and ensuring employees are skilled, motivated,
and fairly compensated.
2. Implementing Managerial Activities:
○ Effective HR Planning supports managerial functions like
planning, organizing, and controlling by ensuring the right
people are in place.
3. Motivating Employees:
○ Includes creating incentive programs to keep employees
engaged and motivated, improving retention and performance.
4. Improving Employee Relations:
○ Focuses on training and development to foster strong human
relations, clear communication, and effective teamwork.
5. Coping with Change:
○ Helps organizations adapt to external changes by developing
strategies to enhance performance.
6. Evaluating Demand and Supply of Resources:
○ Balances the number of employees to avoid overstaffing or
understaffing, ensuring cost efficiency and meeting job
demands.
7. Increasing Quality of Hire:
○ Enhances hiring decisions by attracting candidates who match
the organization’s needs more effectively.
 8. Growing a Competitive Advantage:
○ Identifies and nurtures talent to give a competitive edge, adapt
to changes, innovate, and deliver superior products or services.

b. Internal and External Sources of Human Resources

Internal Sources:

1. Present Employees:
○ Promotions and Transfers: Utilizes current employees for
higher positions or different roles, enhancing motivation and
reducing training costs.
○ Advantages: Familiarity with organizational culture, motivation,
cost-effective.
○ Disadvantages: Limited choices, potential inbreeding, and
potential frustration among non-promoted employees.
2. Former Employees:
○ Rehiring: Engages retired or retrenched employees for
part-time roles, leveraging known performance.
○ Advantages: Familiarity with the organization.
○ Disadvantages: May not always be feasible or desirable.
3. Employee Referrals:
○ Referrals: Employees recommend friends or relatives, often
resulting in good fits due to known qualities.
○ Advantages: Effective method due to known candidate
qualities.
○ Disadvantages: Potential for limited diversity and “inbreeding.”
4. Previous Applicants:
○ Existing Applications: Reuses applications from previous job
seekers.
○ Advantages: Cost-effective and efficient for unskilled or
semi-skilled jobs.
○ Disadvantages: May not always meet current needs.

External Sources:

1. Employment Exchanges:
○ Government Agencies: Register and place job seekers,
obligatory for certain employers.
○ Advantages: Useful for a range of jobs; often preferred for
clerical roles.
 ○ Disadvantages: Limited to the government’s processes and
scope.
2. Employment Agencies:
○ Private Agencies: Provide a list of candidates for various
levels.
○ Advantages: Saves time and cost for employers.
○ Disadvantages: Risk of losing suitable candidates during the
screening process.
3. Advertisement:
○ Job Ads: Wide reach for various job levels and types.
○ Advantages: Broad reach and can attract a large number of
applicants.
○ Disadvantages: Can generate irrelevant applications and may
require careful crafting.
4. Professional Associations:
○ Associations: Help recruit highly skilled professionals through
member services.
○ Advantages: Effective for specialized positions.
○ Disadvantages: Less common and might not yield a large
number of applicants.
5. Campus Recruitment:
○ Educational Institutions: Recruits students from training
institutes or universities.
○ Advantages: Centralized candidate pool, opportunity to
promote the organization.
○ Disadvantages: Limited to entry-level positions and similar
educational backgrounds.
6. Deputation:
○ Temporary Assignments: Sends employees to other
organizations for short durations.
○ Advantages: Provides expertise without initial training costs.
○ Disadvantages: Short commitment period and potential lack of
long-term dedication.
7. Word-of-Mouth:
○ Informal Networks: Recruitment through informal channels or
“employee-pinching.”
○ Advantages: Cost-effective and quick.
○ Disadvantages: Limited to current employees’ networks and
may lack diversity.
8. Raiding or Poaching:
 ○ Attracting Rivals’ Employees: Offers better terms to
employees of competing firms.
○ Advantages: Can quickly attract qualified personnel.
○ Disadvantages: Often seen as unethical and can create
conflicts.

Evaluation of Sources:

● Internal Sources: Generally more economical and familiar but may

limit the talent pool and create internal conflicts.
● External Sources: Offer a broader range of talent and bring in fresh
perspectives but can be costly and time-consuming.

Choosing the right recruitment source depends on the organization’s

needs, job levels, and local labor market conditions.

Recruitment

Definition: Recruitment is the process of identifying, attracting, and hiring

suitable candidates to fill job positions. It involves identifying staffing needs,
creating job descriptions, advertising positions, and selecting candidates.

Types of Recruiting:

1. Internal Recruiting: Filling positions with current employees.

2. Retained Recruiting: Paying a recruiting firm an upfront fee to
exclusively find candidates.
3. Contingency Recruiting: Paying a recruiting firm only if a candidate
is hired.
4. Staffing Recruiting: Matching candidates with temporary or
short-term roles.
5. Outplacement Recruiting: Helping displaced employees find new
jobs.
6. Reverse Recruiting: Encouraging employees to seek better-fitting
opportunities elsewhere.

Tips for Effective Recruiting:

 1. Internal Recruiting: Consider current employees before looking
externally.
2. Reach Out to Passive Candidates: Look for talented individuals
who are not actively job hunting.
3. Hire Proven Success: Focus on candidates with a track record of
success in similar roles.

Selection

Definition: The selection process in HRM involves choosing the most

suitable candidate based on qualifications, skills, and fit for the role.

Key Steps:

1. Developing Selection Criteria: Define what skills and attributes are

needed.
2. Receipt of Applications and Resume Review: Collect and review
resumes to shortlist candidates.
3. Conduct Interviews: Assess candidates through various types of
interviews.
4. Background Checks: Verify the candidate's qualifications and past
performance.
5. Making the Offer: Extend a formal job offer to the selected
candidate.

Important Metrics:

1. Time to Fill Position: Duration to fill a job vacancy.

2. Interview to Hire Ratio: Efficiency of the hiring process.
3. Time per Process Step: Time spent at each stage of selection.
4. Hire Quality: Success and retention of hires.
5. Offer Acceptance Rate: Ratio of job offers accepted.
6. Application Drop-off Rate: Percentage of candidates who abandon
the application process.

Socialization
Definition: Socialization is the process through which new employees
learn the necessary skills, attitudes, and behaviors to integrate into their
new work environment.

Stages:

1. Pre-arrival: New hires bring their own expectations and values.

2. Encounter: New employees adjust their expectations to the reality of
the job and the organization.
3. Metamorphosis: New hires become comfortable and integrate fully
into the organization.

Purposes:

1. Productivity: Help new employees become productive quickly.

2. Policies & Rules: Educate on organizational guidelines.
3. Compensation & Benefits: Clarify rewards and benefits.
4. Corporate Culture: Introduce the organization's culture.
5. Team Membership: Integrate new employees into teams.
6. Employee Development: Guide on career growth and promotions.
7. Dealing with Change: Prepare employees to handle organizational
changes.

Responsibility:

● HRM Department: Coordinates and conducts orientation.

● Supervisor: Provides department-specific training and integration.
● Peers: Help new hires understand team dynamics and expectations.

This summary captures the essential aspects of recruitment, selection, and

socialization in HRM.