UNIT II: Human Resource Planning and Employee Hiring MBA Notes

Job Analysis

Meaning of Job Analysis

Job analysis is the process of understanding and gathering detailed information about a job. It involves examining the tasks, responsibilities, skills, and qualifications required for a specific job. Job analysis helps employers understand what is expected from the person filling the position.

Example:

Imagine you're applying for a job as a customer service representative. Job analysis would include identifying tasks like answering customer calls, solving problems, and knowing how to use the company's software. It would also list skills such as good communication, patience, and computer literacy.

Human Resource Planning and Employee Hiring MBA Notes

Importance of Job Analysis

Job analysis is crucial for both employers and employees for several reasons:

Helps in Recruitment: By understanding the job’s requirements, employers can write clear job descriptions to attract the right candidates.
Training and Development: Knowing the skills needed for a job helps in creating effective training programs.
Fair Compensation: Job analysis helps determine appropriate salary levels based on the responsibilities and skills required for the role.
Performance Evaluation: It allows employers to set clear expectations for job performance, making it easier to evaluate whether employees are meeting those expectations.

Example:
A retail store manager would need to perform tasks like managing staff, inventory, and customer complaints. By performing job analysis, the company can create a fair job description, helping to hire the right candidate and evaluate their performance.

Job Design

Meaning and Importance of Job Design

Job design is the process of structuring a job in a way that makes it meaningful, efficient, and motivating for the employee. It involves deciding how tasks will be divided, how employees will interact with each other, and what tools or processes will be used to get the work done.

Example:
Think of a factory worker who assembles toys. If the job is designed to be repetitive, it can get boring. But if the job is designed to involve different tasks—such as assembling, inspecting, and packaging—the worker may feel more motivated and engaged. Job design can also make sure that employees' jobs are safe and manageable.

Types of Job Design

Job Rotation:
- Involves employees moving between different tasks at regular intervals. This helps prevent boredom and enhances skill development.
- Example: A teacher may rotate between teaching different subjects or different grade levels.
Job Enlargement:
- Involves adding more tasks to a job to increase the variety and scope of the work. This helps employees feel more involved in the job and can improve job satisfaction.
- Example: A data entry clerk who only enters numbers might be given additional tasks like organizing the data, making the work more interesting.
Job Enrichment:
- This approach adds more responsibility and control to a job. It gives employees the chance to take on decision-making roles, which boosts their satisfaction and motivation.
- Example: A call centre operator who is usually handling calls might be given the responsibility of training new staff or improving customer service processes.
Task Specialization:

This involves focusing a job on specific tasks, which leads to more efficient work. It’s suitable for jobs that require specific technical skills or knowledge.
Example: An IT technician may only focus on troubleshooting hardware issues, rather than dealing with software or customer service.

Human Resource Planning (HRP)

Human Resource Planning (HRP) is like making sure you have the right number of people with the right skills in the right jobs at the right time. Just like a cricket team plans how many batsmen, bowlers, and fielders they need for a match, a company plans how many employees they need to run the business smoothly.

Meaning of Human Resource Planning

HRP is the process of predicting how many employees a company will need in the future and making sure there are enough skilled people available to fill those positions. It also includes making sure employees are trained and ready for upcoming roles.

For example, imagine a restaurant owner planning to open two new outlets. They will need more chefs, waiters, and cashiers. If they don’t plan in advance, they might struggle to hire enough staff on time. HRP helps avoid such problems.

Steps in Human Resource Planning

HRP involves several important steps to ensure a company has enough employees to meet its goals:

Analyzing Current Workforce:
- The company checks how many employees they currently have and what skills they possess.
- Example: A hospital checks how many doctors, nurses, and staff it has and whether they need more.
Estimating Future Workforce Needs:
- The company predicts how many employees it will need in the future.
- Example: A software company expects to get new projects next year, so they estimate they will need 50 more software engineers.
Identifying Gaps:
- The company compares the employees it has with the employees it will need. If there are fewer workers than needed, they plan for hiring. If there are extra workers, they may transfer them to other roles.
- Example: A car manufacturing company sees that they have 10 welders now, but in the future, they will need 20 more. This means they have a gap of 10 welders.
Developing a Plan to Bridge the Gap:
- The company decides how to fill the gap, whether by hiring new employees, training existing ones, or promoting from within.
- Example: A retail store plans to promote experienced sales staff to managerial positions instead of hiring from outside.
Implementing the Plan:
- The company takes action by hiring new employees, training staff, or making changes to its workforce.
- Example: An IT company starts a training program for fresh graduates so that they are ready for jobs in the future.
Reviewing and Monitoring:
- HR managers check if their plan is working and make changes if needed.
- Example: A call centre checks whether new hires are performing well and decides whether to hire more people.

Importance of Human Resource Planning

HRP is crucial because it helps companies avoid problems like employee shortages or extra employees with no work. Here’s why it is important:

Prevents Shortages and Surpluses: Companies can ensure they have enough employees to handle their work without over-hiring.
Saves Time and Money: Good planning reduces last-minute hiring, which can be expensive.
Improves Productivity: Employees are assigned work properly, reducing workload stress and increasing efficiency.
Helps in Career Growth: HRP ensures employees get training and promotions at the right time.

For example, if a delivery company expects an increase in online orders during a festival, they can plan to hire extra delivery staff in advance. Without HRP, they might struggle to meet demand.

Methods of Demand Forecasting for Manpower Planning

Companies use different methods to estimate how many employees they will need in the future. These methods fall into two categories:

1. Qualitative Methods (Based on Experience and Judgment)

These methods rely on expert opinions rather than numbers and statistics.

Expert Judgment: HR managers and company leaders predict future workforce needs based on their experience.
- Example: A hotel manager predicts that in the wedding season, they will need more waiters and housekeepers.
Delphi Method: Experts give their opinions in multiple rounds until a final agreement is reached.
- Example: A mobile company asks senior managers to predict how many salespeople they will need for their new smartphone launch.
Workforce Demand Based on Company Goals: Companies estimate employees needed based on future expansion plans.
- Example: A supermarket chain opening 10 new stores calculates how many cashiers, managers, and stock workers will be required.

2. Quantitative Methods (Based on Data and Numbers)

These methods use past data and numbers to predict future workforce needs.

Trend Analysis: Companies look at past employee data to predict future hiring needs.
- Example: A bank notices that they have been hiring 50 new employees every year, so they estimate the same for next year.
Ratio Analysis: Companies compare employees to business performance, like sales per employee.
- Example: A garment factory finds that 1 tailor produces 50 shirts per month. If they need to make 10,000 shirts, they will need 200 tailors.
Regression Analysis: Companies use mathematical formulas to predict employee needs based on different factors.

Example: A mobile company checks how many customer service agents they needed in past years and calculates how many they will need in the future based on expected customer growth.

Factors Influencing Human Resource Planning (HRP)

Human Resource Planning (HRP) is about making sure a company has the right number of employees with the right skills at the right time. Several factors affect HRP, which can be divided into internal and external factors.

1. Internal Factors (Within the Company)

These are factors inside the company that affect how HR plans for employees.

Company’s Goals & Strategies: If a company plans to expand, it will need more employees, but if it is reducing costs, it may need fewer employees.
Current Workforce: The number of employees, their skills, and their performance affect hiring decisions.
Employee Turnover Rate: If many employees leave frequently, the company needs to plan for replacements.
Budget & Financial Condition: If a company is doing well financially, it can hire more people. If it is struggling, it may freeze hiring.
Technology Changes: New technologies may require the company to hire employees with special skills or train existing ones.

2. External Factors (Outside the Company)

These are factors that the company cannot control but must consider while planning for employees.

Economic Conditions: If the economy is booming, companies hire more people. During a recession, hiring slows down.
Labor Market Conditions: If there are many skilled workers available, hiring is easier. If there is a shortage, the company may struggle to find the right employees.
Government Policies & Laws: Labor laws, minimum wages, and work regulations affect hiring decisions.
Competitors: If competitors offer better salaries or benefits, a company may lose employees and need to plan for replacements.
Social & Demographic Changes: Factors like aging populations or changing job preferences affect the availability of workers.

Employee Hiring

Hiring the right people is one of the most important tasks for any company. It involves two key steps: recruitment and selection.

1. Methods of Recruitment

Recruitment means attracting people to apply for jobs. It can be done in two ways:

Internal Recruitment (Hiring from Within the Company)
- Promotion: Giving a higher position to an existing employee.
- Transfers: Moving an employee from one department to another.
- Employee Referrals: Current employees suggest candidates for open positions.
- Rehiring Former Employees: Bringing back employees who left earlier.
External Recruitment (Hiring from Outside the Company)
- Job Portals & Company Websites: Posting job openings on platforms like Naukri, LinkedIn, or the company’s website.
- Campus Recruitment: Hiring fresh graduates from colleges.
- Employment Agencies: Taking help from agencies that find suitable candidates.
- Social Media Recruitment: Using LinkedIn, Facebook, and Twitter to find potential employees.

Each method has its advantages. Internal recruitment saves time and motivates employees, while external recruitment brings in fresh talent.

2. Employee Selection

After recruitment, the company must select the best candidates from the applicants.

Meaning of Employee Selection

Employee selection is the process of choosing the right candidate for a job. It is like picking the best fruit from a basket—you want the freshest and best-quality one!

Importance of Employee Selection

Ensures the Right Fit: Selecting the right person for the job increases productivity.
Saves Time & Money: Hiring the wrong person can lead to training costs, errors, and even rehiring.
Improves Company Performance: Skilled employees contribute to the company’s success.
Reduces Employee Turnover: If the right person is selected, they are more likely to stay with the company.

In short, selecting the right employees ensures a company runs smoothly, grows, and remains successful.

Process of Employee Selection and Recent Trends in Recruitment

Hiring the right employee is like choosing the best player for a cricket team. If the selection process is strong, the team (company) performs well. Let’s understand how companies select employees and the latest trends in recruitment.

Process of Employee Selection

Once applications are received, companies follow a step-by-step process to select the best candidate. Here are the steps:

1. Screening Applications

When a company posts a job, it receives many applications. The HR team first filters out irrelevant applications and shortlists the ones that match the job requirements.

💡 Example: If a company needs a software developer but receives applications from teachers, those applications will be rejected in this step.

2. Initial Interview (Telephonic or Online)

Before calling candidates for a face-to-face interview, companies often conduct a short phone or video interview to understand the applicant’s basic skills and interest in the job.

💡 Example: A company hiring a salesperson might ask basic questions like, “How would you convince a customer to buy our product?”

3. Written Test / Aptitude Test

Some companies conduct written tests to check problem-solving skills, technical knowledge, or language proficiency.

💡 Example: For an accountant’s job, the company may give a test with simple financial calculations.

4. Face-to-Face Interview

This is the most important step where candidates meet the employer. The interviewer asks about skills, experience, and problem-solving ability.

💡 Example: A candidate applying for a customer service job may be asked, “How would you handle an angry customer?”

5. Group Discussion (if needed)

For jobs that require teamwork, companies may conduct a group discussion to see how well candidates communicate and present ideas.

💡 Example: In a bank job interview, candidates might ask “Is online banking safer than traditional banking?”

6. Final Interview with Senior Managers

The final round is usually conducted by senior managers or HR heads. They check the candidate’s confidence, attitude, and salary expectations.

7. Background Verification & Reference Check

Companies verify if the information provided by the candidate is correct. They may contact previous employers for feedback.

💡 Example: If a candidate claims to have 3 years of experience in a company, HR may call that company to confirm.

8. Job Offer and Appointment Letter

If a candidate clears all rounds, they receive an offer letter mentioning salary, job role, and joining date.

Methods of Selection

Companies use different methods to select employees based on job type:

🔹 Interviews – The most common method where candidates answer questions from HR and managers.
🔹 Written Tests – Used to check logical reasoning, technical skills, and communication.
🔹 Psychometric Tests – These tests assess a candidate’s personality and behavior.
🔹 Practical Task / Work Sample Test – Some jobs require candidates to complete a task to prove their skills. (Example: A content writer may be asked to write an article on the spot.)
🔹 Group Discussions – Used for leadership and communication-based roles.

Recent Trends in Recruitment

Hiring methods are evolving with technology. Let’s look at the latest recruitment trends:

1. Digital Recruitment (Online Platforms)

Gone are the days when people applied for jobs by visiting offices. Today, companies use websites like LinkedIn, Naukri, and Indeed to post job openings. Candidates can apply online and even attend interviews via Zoom or Google Meet.

💡 Example: A software engineer looking for a job can apply on LinkedIn and get hired without ever visiting the company’s office.

2. Use of Artificial Intelligence (AI) in Recruitment

Many companies use AI to screen resumes and shortlist candidates. AI-powered chatbots also conduct initial interviews.

💡 Example: If a company receives 1,000 job applications, AI can filter the best 50 resumes in seconds by matching skills with job requirements.

3. Social Media for Recruitment

Companies also find employees through social media platforms like LinkedIn, Twitter, and Facebook.

💡 Example: A digital marketing company may post a job opening on Instagram, and interested candidates can apply directly.

Case Studies – Real-Life Examples

Case Study 1: How a Startup Hired the Right Team with Online Recruitment

A Bangalore-based tech startup needed a team of developers but had limited time and budget. Instead of traditional hiring, they used LinkedIn and Naukri.com to find suitable candidates. Within a week, they conducted online interviews and hired skilled developers without spending on recruiters.

Case Study 2: AI Helping a Big Company Shortlist Candidates

A multinational company received 5,000 applications for 100 positions. Instead of manually reading every resume, they used AI software that shortlisted candidates based on experience, skills, and keywords in resumes. This saved time and helped in fast recruitment.

Case Study 3: Social Media Hiring Success

A fashion brand wanted a creative social media manager. Instead of using job portals, they posted a job opening on Instagram and asked interested candidates to submit a one-minute video explaining their ideas. The company hired the best candidate from the videos received.