Module 2 Pre-Recruitment functions

of HRM

Module 2 Pre-Recruitment functions

of HRMBy:

Monica M

SyllabusOrganizational structure Job analysisHR Planning and budget approval. Strategic decision to outsource, Engage contract workers or to recruit people on company role.

Pre-Recruitment Functions The major HRM activities in the pre-hire phase

are Study organization structure, human resource planning and job analysis.

Human resource planning helps managers to anticipate and meet changing needs related to the acquisition, deployment, and utilization of employees. 

Job analysis is the systematic process used for gathering, analyzing, and documenting information about particular jobs. The analysis specifies what each worker does, the work conditions, and the worker qualifications necessary to perform the job successfully.

Organization of HRM A systematic arrangement of people brought

together to accomplish some specific purpose; applies to all organizations—for-profit as well as non-profit organizations.

Organizations

Organisation Structure:

Organisation structure is a basic framework within which the mangers’ decision making behaviour takes place.

Organization structure is the pattern of relationships among various components or parts of the organization.

Organizational structure refers to the way tasks are divided up, how the work flows, how this flow is coordinated and the forces and mechanisms that allow this coordination to occur.

Organization Structure Elements

Work Specialization

The degree to which tasks in the organization are sub-divided into separate

jobs with each step completed by a different person. Overspecialization can

result in human diseconomies from boredom, fatigue, stress, poor quality, increased absenteeism, and higher turnover.

Departmentalization

Departmentalization: It is the process of dividing work of an

organization into various units or departments.

The 5 forms of departmentalization are: Functional Departmentalization Product Departmentalization Geographical Departmentalization Process Departmentalization Customer Departmentalization

Functional Departmentalization

Here the structure is built up on specialization. Departments are grouped, based on specialized knowledge available, viz., production, marketing, sales, materials and finance.

Product Departmentalization

LG

Home Appliances

Television Refrigerator

Washing Machine

Computers

Laptop Desktop

Keyboard Speaker Accessories

Telecom devices

Mobile Fixed line phone

It groups jobs by product line. Each manager is responsible of an area within the organization depending of his/her specialization

Positive Aspects Negative AspectsoAllows specialization in particular products and servicesoManagers can become experts in their industryoCloser to customers

oDuplication of functionsoLimited view of organizational goals

Geographical Departmentalization

 It groups jobs on the basis of

territory or geography. 

Positive Aspects Negative AspectsoMore effective and efficient handling of specific regional issues that ariseoServe needs of unique geographic markets better

oDuplication of functionsoCan feel isolated from other organizational areas

Process Departmentalization:

RTO Office

Accounts

New Registrati

onPenalty

Registration

Vehicle Check

Driving test

Processing Approval Dispatch

+More efficient flow of work activities

– Can only be used with certain types of products

 It groups on the basis of product or customer flow.

Customer Departmentalization

+ It groups jobs on the basis of common customers

Customers’ needs and problems can be met by specialists

- Duplication of functions

Span of Control

The number of employees who can be effectively and efficiently supervised by a manager.

Centralization and Decentralized

Centralization The degree to which decision-making is

concentrated at a single point in the organizations. Reduced information overload on upper managers. Increased motivation and accountability throughout

organization. Fewer managers; lower routine costs.

Decentralization Organizations in which decision-making is pushed

down to the managers who are closest to the action. Easier coordination of organizational activities. Exercise of strong leadership in crisis. Faster decision making and response.

Chain of Command

The continuous line of authority that flows from upper levels of an organization to the lowest levels of the organization and clarifies who reports to whom.

Authority The rights inherent in a managerial position to tell

people what to do and to expect them to do it. Responsibility

The obligation to perform any assigned duties. Unity of Command

The concept that a person should have one boss and should report only to that person.

Organization Structure Formalization

The degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures.

Formalization is the internal process through which an organization sets rules, standards, and procedures to ensure that things get done correctly.

HRM in Organization HRM Small-scale Unit

Production Manager

Sales Manager

Office-Manager

Accountant

Owner/Manager

Personnel Assistant

HRM Large-scale Unit

DirectorProductio

n

DirectorFinance

DirectorHRM

DirectorMarketin

g

Chairman and Managing Director

DirectorR&D

Job Job may be defined as “collection or

aggregation of tasks, duties and responsibilities which as a whole, are regarded as a regular assignment to individual employees.”

Job DesignJob Design

Job Satisfaction

Job Satisfaction

Job Performanc

e

Job Performanc

e

Physical andMental Health

Physical andMental Health

Job design “Job design is deliberate and systematic

attempt to structure the technical and social aspect of the work to improve the efficiency and job satisfaction”

“Job design is a process which integrates work content, the rewards and the qualifications required for each job in a way that meet the needs of the employees and the organization.

Job design is a way of organizing tasks, duties and responsibilities into a productive unit of the work.

Job Design Options: Techniques or Nature of Job Design/Job analysis

Job Enlargem

ent

Job Rotati

on

Job Bandwidt

h

Job Enrichme

nt

Job Simplificati

on

Job characteristics approach

Theory by HACKMAN AND OLDHAM

Job characteristics approach

• The extent to which the work requires several different activities for successful completion.

Skill Variety

• The extent to which the job includes a “whole” identifiable unit of work that is carried out from start to finish and that results in a visible outcome.

Task Identity

• The impact the job has on other people.

Task Significance

• The extent of individual freedom and discretion in the work and its scheduling.

Autonomy

• Amount of information employees receive about how well or how poorly they have performed.

Feedback

Job characteristics approach

Skill variety, task identity & task significance gives job satisfaction

Autonomy gives sense of responsibility & commitment

Feedback enables to analyze performance

Motivating Potential Score (MPS) of a job =

(Skill variety + task identity + task significance) X autonomy X feedback

3

Job Analysis

Job Description A list of job’s duties, responsibilities,

reporting relationship, working conditions, and supervisory responsibilities.

Job Specification A list of job’s “human requirements” that

is, the requisite education, skills, personality and so on.

Job Analysis = Job Description + Job Specification.

JOB ANALYSISA process of obtaining all Information about job facts

Job Description• Job Title, Job code• Location• Job summary• Duties• Machine tools etc• Material etc• Supervision• Working condition• Hazards

Job Specification• Education• Experience• Training• Initiative• Physical effort• Responsibilities• Communication skills• Emotional characteristics• Sensory sight etc.

BENEFITS/USES OF JOBS ANALYSIS

Job Analys

is

Job Descripti

on

Job Specificati

on

Job Evaluation

Training and Development

Recruitment & Selection

Human Resource Planning

Performance Appraisal

Safety and Health

Placement & Orientation

Employee Counselling

Job Analysis in Perspective

Recruitment, Selection, Training and development,, Performance management

Recruitment, Selection, Training and development,, Performance management

METHODS

Direct observation Interview of existing post holder

QuestionnairesPrevious studiesWork dairies

EG: Job Description

Job Title: Business Development ExecutiveResponsibilities:·         Calling and lead generation·         Fixing appointment and meeting clients.·         Giving presentation·         Writing proposals·         Closing the deals. Salary Offered:  Rs. 1.8 LPA  Location: BangaloreTentative date of interview: In the next weekTentative date of joining: ASAPProbation/Training Period : 6 Months Training and 6 Months Probation

EG: Job Specification

Education: MBA – Marketing Experience: 0 – 1 Year Requirements:          Excellent communication skill (English)          Excellent writing skill (English)          Passion for Sale Convincing Skills.          Self driven          Good if candidate has a bike          Candidate must have own laptop

E.G Finance specialization Job role:-

Financial Advisor Stock Advisor Equity commodity analyst Business development executive

Salary Range: 1.8L PA  Qualification: MBA-Finance Joining Dates: Immediate Local or Out Station Candidates: Both/ Must be

fluent in Hindi

E.G Job Description:1.     Fluency in Hindi is Must.2.     Generate leads from the high net worth individuals and

retail individuals.3.     Conduct cold-calls to increase effective working prospects4.     Responsible for the business development by acquiring

potential customers to achieve sales target and market share.5.     Communicate effectively and correctively to the customers

with the tune of the organization.6.     Strong drive to cold call and hunt for new opportunities at

new clients.7.     Closing the deals with the client.8.     Excellent communication skills.

E.G Job Description:

9.     Strong analytical skills.10.   Update the Marketing manager and operational manger

daily11.   Prepares reports by collecting, analyzing, and summarizing

information.12.   Achieves marketing and sales operational objectives by

contributing marketing and sales information and recommendations to strategic plans and reviews.

13.   Protects organization's value by keeping information confidential

14.   Maintain company’s contact management database with accurate, up-to-date contact and activity details, Produce monthly sales reports.

15.   Achieving revenue target of Rs 60,000.00 monthly basis.16.   Contributes to team effort by accomplishing related results

as needed.17.   Meet annual sales targets.

Job analysis – HR specialization

Job Profile: Role would require candidates with good communication skills with an attitude towards learning new things. Flexible enough for travel ( both domestic & international) & also for shifts.

Candidates with expertise in the area of specialization ( HR) would be working in Oracle ERP projects.

ELIGIBILITY CRITERIA Post Graduation : MBA (HR) /PGDM (HR) 60% and above score in 10th 60% and above score in 12th 60% and above score in Graduation 60% and above score in current course at the time of joining. No current arrears/ back papers at the time of Joining.

Job analysis – HR specialization

Selection Process Written Test (Aptitude) Technical Written Test Technical/Functional Interview HR Interview Salary Details CTC: : 3.27 Lakhs per annum Service Agreement: Yes NOTE: The Service Agreement Period is of 24

Months (2 Years)

EG:

EG:

Process of Job analysis

Organizational analysis

Selection of representativ

e Position

Collection of job analysis

data

Preparation of job

description

Preparation of job

specification

Advantages of Job Analysis

Disadvantages of Job Analysis

HUMAN RESOURCE PLANING

In simple words, HRP is the process of forecasting an organization's future demand for & supply of the right type of people in the right number.

“It is the process of determining manpower requirements and the means of meeting those requirements in order to carry out the integrated plan of the organization.” -----

Coleman It is the process of determining right kind of people required

to do the specific job

Objectives of HRP

Assessing manpower needs for future and making plans for recruitment and selection

Assessing skill requirement in future Determining training and development needs

of organization Anticipating/determine surplus or shortage of

staff and avoiding unnecessary detention and dismissals.

Controlling wage and salary cost. Ensuring optimum use of human resource in

organization Helps organization to cope with the technological

development and modernization.

NEEDS FOR HRP

Replacement of persons : Retirement, old age, death etc.

Labour turnover Expansion plans : Expand or Diversify Technological changes : Up gradation. Helps in assessing the human

resource requirements of organizations.

FEATURES OF HRP

It is future oriented

It is a continuous process

Optimum utilization of resources

Both Qualitative and Quantitative aspect

Long term and Short term

Involves study of manpower requirement

BENEFITS OF HUMAN RESOURCE PLANNING

Reduced labor cost Optimum utilization of manpower force Identification of gap existing in manpower Improvement in overall business planning Career succession planning Creates awareness in the organizations Growth of organization Beneficial to the country

PROBLEMS OF HRP

Accuracy of forecast Identity crisis Support from top management Resistance from employees Insufficient initial efforts Management information system: Information

availability Uncertainties Expensive and time consuming Coordination with other managerial functions It is a unbalanced approach as quantity aspect of

human resource if focused more that qualitative aspect.

HRP Process

HR planning and Budget Approval

Budget is plan for controlling the use of funds over a period of time

A company stays profitable by working within its predetermined budget.

When human resources personnel set out to fill job openings, they need to understand the departmental personnel budgets they are working with and stay within those numbers when negotiating with candidates.

This requires close work with executives and managers to make sure the company gets the talent it needs to move forward but without going over the prescribed annual budget.

HR planning and Budget Approval

HR Budget would further requires the CFO approval How many employees do we need – in terms

of numbers What are we looking for in terms of skills,

knowledge, experience Where do we need the employees – location,

dept? When do we need the employees? How long do we need them The HR budgeting will be affected if there are

changes like more use of health benefits due to flu, dengue etc, or advance salary, technological changes.

HR planning and Budget Approval

The plan cannot be implemented if there is financial constraints in an organization.

HR Budgeting is a powerful financial tool that estimated the expenditure

HR budgeting helps to apportion funds in different activities like recruitment, training, retaining etc.

Decision makers in an organization approve the HR budget

Organization will carry out HR budget based on the previous year expenses.

Outsourcing

Outsourcing is the act of transferring some of an organization’s recurring internal activities and decision rights to outside providers, as set forth in a contract.

Reduce costs Gain access to cutting edge technology Avoid additional investments Provide more self service tools to employees

Steps to Successful Outsourcing

Strategic -future vision consideration, current and future core competencies, structure, costs, performance, competitive advantages.

1. Planning initiatives2. Exploring strategic implications3. Analyzing costs/performance4. Selecting providers5. Negotiating terms6. Transitioning resources7. Managing relationships

Strategic decision to outsource

Outsourcing is a strategic tool used by companies to improve their ability to concentrate on the core competencies

Organizations would consider outsourcing to - Improve focus on core competencies Improve focus on broader business issues Gain competitive advantage through new tools,

technologies, methodologies and procedures Accelerate reengineering Shared/reduced risk associated with reengineering

changes Reduce operating cost Control and redirect valuable resources

List of HR activities can be outsourced

Background Checks – 73% Employee

Assistance/Counseling – 66%

Healthcare Benefits Administration – 60%

Pension Benefits Administration – 55%

Temporary Staffing – 54% Retirement Benefits

Administration – 47% Payroll & Software

Services – 48% Recruiting, Staffing &

Search

Training and Development – 21%

Incentives – 19% HRIS & Web-based

Services – 15% Performance Management

3% Strategic Business

Planning – 4% Policy

Development/Implementation – 4%

Employee Communication Plans – 10%

Employee vs. Contractor Contract workmen are indirect employees; persons

who are hired, supervised and remunerated by a contractor who, in turn, is compensated by the establishment.

Contract labor should not be employed where(a)The work is permanent and must go on from day to

day;(b) The work is incidental to and necessary for the

work of the factory;(c) The work is sufficient to employ considerable

number of whole time workers; and(d) The work is being done in most concerns through

regular workmen.

Employee vs. ContractorEmployee vs. Contractor"We found many contract workers were as productive as our permanent workers. Our outlook on their training and skill development has changed.“ by Forbes Marshall

Contract is awarded by the HR departmentHR dept. send a job request to the III parties or consultants.The following steps are required for contractingI) EnquiryII) Offers III Comparative StatementIV) NegotiationV) Award the Contract

Contractors – Contract workers

Relationship mostly governed by contract law and perhaps also agency law, not employment law.

The Indian Contract Act, 1872 Contract workers also called as contingent

workers, less costly for employers. But employers loses a degree of control.

  A contract worker at Maruti Suzuki's plant in Manesar, Haryana. for the last two years is paid Rs 7,200 per month. on the same assembly line doing the same job, a permanent Maruti employee earns Rs 18,000 per month. 

Thank You....

HR side of Indra Nooyi

Indra Nooyi writes letter to her employees once in every two weeks.

She sends letter to parents of employees & also report card.

Indra Nooyi thankful to spouses of employees.

HR policy of Pepsi

No outstation meeting allowed on Monday so that executives do not have to travel on Sunday.

Managers allowed to take a year off with benefits like car & health insurance.

In what way employees manage work life balance is one of the parameters in annual appraisal.

Important Questions1)Define Job design and explain different approaches

of job design?2)What is job analysis? Explain the

technique/methods involved in job analysis?3)What is HRP4)Explain the process of HRP?5)What are the benefits and limitation of HRP?6)Explain the benefits of job analysis?8)Why is human resource planning important?9)Define job rotation

Important Questions10)Explain the term: Job specification and job

description11)Explain various techniques used for job analysis12)Differentiate between job enlargement and job

enrichment13)Explain the Job Characteristics model of job design

(Hackman & Oldham Model)

14)Explain the techniques of job design/Nature of Job design/Design Options?

15)Explain methods of collecting job analysis16)Explain relevance/significance/importance of

human resource planning in organization