1.

Define Human Resource Planning (HRP).Discuss the objectives of

Human Resource
Planning.



Meaning of Human Resource Planning.

Explain the four main objectives of Human Resource Planning
ANSWERS:
Human resource planning or manpower planning is essentially the predetermine process of getting the
right number of qualified people into the right job at the right time.

Definition of HRP :-
According to E. W. Vetter, Human resource planning is a process by which an
organization should move from its current manpower position to its desired manpower position. Through
planning, management strikes to have the right number and right kinds of people, at the right places, at
the right time, doing things which result in both the organization and the individual receiving maximum
long-run benefit.

According to Bruce P. Coleman, Manpower Planning is defined as, the process of determining
manpower requirement in order to carry out the integrated plan of the organization.
To recruit and retain the human resource of required quantity and quality.
To foresee the employee turnover and make the arrangement for minimizing turnover and filling up of
consequent vacancies.
To meet the needs of the programs of expansion, diversification etc.,
To foresee the impact of technology on work, existing employees and future human resource
requirements.
To improve the standards, skills, knowledge, ability, discipline etc.,
To assess the surplus or shortage of human resources and take measures accordingly.
To maintain congenial industrial relation by maintaining optimum level and structure of human resources.
To minimize imbalance caused due to non-avail-ability of human resources of right kind, right place.
To make the best use of its human resource.
To estimate the cost the cost of human resources.

A human resources department plays a significant role in a given company, as this department is
responsible for hiring individuals and managing existing employees to get a maximum return on all
company operations and investments. Daily operations include improving employee relations, developing
administrative manuals, hiring new management and performing evaluations to ensure all employees
meet company goals and expectations. Since human resources representatives hire people and develop
plans for the future, the main focus of this department is planning.
Hiring Employees
When a company hires new employees, it is often human resources managers that are responsible for interviewing
new applicants to ensure the companys needs are met. One major objective for human resources managers is to find
the appropriate number of people with the best-fitted skills and experiences for the companys needs. Experienced
workers will get the work done for the lowest amount of funding with the goal of bringing in the maximum profits.
In addition, finding the best-suited workers is part of planning for the companys future.
Union Workers
Some workers are controlled by unionized laws and regulations. Companies operating under unionized regulations
also have a human resources department. One major objective for unionized companies is to follow the unions
regulations and plans in regards to wages and salaries. This means respecting the requirements set out by the union,
despite the performances and seniority of the companys workers.
Administrative Manuals
Human resources workers are responsible for developing manuals and guides for employees and managers to
follow, whether they are training manuals or safety guides. One major objective for the human resources department
is to create guides and manuals that not only holds true for years to come, but also provide a planned method of
completing tasks in the given company. These administrative guides give the company control over how employees
perform tasks.
Equality and Legality
Another major objective for a human resources department in terms of planning is to create plans, rules and
regulations that meet the local and statewide laws in the given industry. For example, a human resources department
of a food-service company must meet local, state and federal laws and regulations for storing food products and
service when preparing administrative manuals for employees and managers.


2.
What do you mean by Human Resource Audit? Discuss the purpose of HR Audit.
Explain
the common approaches to HR Audit.



Definition of HR Audit

Describe the purpose of HR Audit

Explain the common approaches to HR Audit
ANSWERS:
It is mechanism to review the current HR policies, practices and systems to ensure that they fulfill the
rules and regulations. The audit also helps in identifying the areas of improvement in the HR function.
Nowadays, the audit is done regularly in the organizations.
The HR audit covers various functions of HR like Recruitment, Compensation & Benefits, Performance
evaluation, Termination Process and exit interviews etc.
Advantages: A properly conducted audit helps in the following
To recognize strengths
To reveal problem areas
Confirms compliance with latest regulations
Ensures effective HR policies
Builds confidence in HR function
The HR audit process can cover a whole range of areas and can be as specific or broad depending on the company.
Requirements will vary, depending on the size of your business and size of HR department as well.
An HR audit will look at issues, such as:
the companys recruitment process
benefits and compensation processes
contracts and employee handbooks
how employee performances are evaluated
training and education programmes
HR strategy
hiring and firing practices
exit procedures

A human resources audit is a tool that is used to collect and evaluate information about the state of an
organisations HR practices and policies to determine the overall effectiveness of people management
practices in the organisation. The HR audit demonstrates to what extent the HR function contributes to
the organisational effectiveness as a whole, as well as productivity and morale. It also helps by providing
feedback on the value of the contribution of the HR function to the organisations strategic business
objectives and in assessing the quality of HR practices. More importantly the audit can be used in setting
guidelines for establishing HR performance standards and identifying areas for change and improvement.
Companies need to periodically audit their human resources practices to check if they are still adding
value to the business. The audit can be performance related or a compliance one depending on your
business requirements. A human resources audit can be an effective first step towards building better
human resources practices for your organisation. A number of business organisations, large and small,
will benefit immensely from a comprehensive audit of their human resources practices.
The audit helps to eliminate many simple but common errors that employers, especially new businesses,
often make. It also serves to educate HR professionals on the latest trends and best practices used by their
peers. The HR audit can give those responsible for employee relations some reassurance that legal risks
have been managed and minimised, thus freeing them to focus on more creative aspects of their jobs that
can add value to the employers bottom line. There are also other benefits in undertaking an HR audit. Its
results can be presented to investors for their review.

There are five common approaches for the purpose of evaluation of HR in any organization:
Comparative approach: In this approach, another division or company that has better practices
or results is chosen as the model. The audit team audits and compares the audited firms results with
the best practices of the model organization. This approach is commonly used to compare
theresults of specific activities or programs. The approach is often used with turnover, absence,
salary data and staffing levels. It helps detect areas where improvement is needed. It also makes
sense to compare where aprocedure is being used for the first time.
Outside authority: In this approach, standards set by a consultant or taken from published research
findings serve as the benchmark for the audit team. The consultant or research findings may help
diagnose the cause of problems.
Statistical: This approach relies on performance measures drawn from the companys existing
information system. From existing records, the audit team generates statistical standards against
which activities and programs are evaluated. With the mathematical standards as a base, the team
may uncover errors while they are still minor. Often this approach is supplemented with comparative
data from external sources such as other firms, or industry association surveys. The information is
usually expressed in ratios or formulas that are easy to compute and use.
Compliance approach: This approach reviews past practices, to determine if actions taken followed
legal requirements and company policies and procedures.
The audit team here often examines a sample of employment, compensation, discipline and
employee appraisal forms. The purpose of the review is to ensure that the field offices and the
operating managers have complied with internal rules and legal regulations, such as minimum
wages and equal employment opportunity laws. By sampling elements of the human resources
information system, the audit team looks for deviations from laws and company policies and
procedures. The team can then determine the degree of compliance achieved.
Management by Objectives (MBO): In this management by objectivesapproach, managers and
specialists set objectives in their area of responsibility. Then they create specific goals against which
this performance can be measured. The audit team researches actual performance and compares it
with the previously set objectives. They can then evaluate the trends in this area.


3.
Suppose you have joined as an HR and you are asked to carry out the HR Audit
process in
your organization. What are the methods you will consider while implementing
the HR
Audit process?



Explain the methods involved in the HR Audit process
ANSWERS:
Common hr areas that you should audit include:
Compensation system, performance appraisal system,policies and procedures,and
health and safety practices.
HR audit is a process defined by different phases:
a) Processing HR audit project at the request of an
organization (defining the problem area, goal setting,
defining the key indicators, selecting methods,
timetable, financial costingness, staffing, etc.);
b) Examining documents and information gathering;
c) Analyzing, measuring, evaluating and interpretation
gathered information (exploration);
d) Processing intervention measures into problematic
areas development program (change in the human
resource management strategy, systems, processes,
methods, programs, etc.);
e) Processing outputs HR audit report and other
required outputs;
f) Implementing measures and evaluating their
introduction.

HR audit examines the quality and availability of the
personnel and management at all levels of administration,
human resource department, efficiency of personnel policies
and processes, evolution and development of an
organization; and evaluates findings in relation to thestrategy and goals of
an organization. HR audit should
demonstrate the share, influence, connection and other
relations between activities of human resource management
and functioning respectively success of the organization.
Consequently, the human resource management should be
strategically oriented while the need to link human resource
activities with the organizational strategy is desirable. The
HR audit results should be expressed not only by qualitative
indicators, but also quantitative, relating to economic
parameter.
Compensation Policy
Auditing compensation, benefits and pay practices requires use of employee census records and, in some cases,
employee personnel files to determine that employee qualifications and credentials match the companys staffing
models. Audits concerning pay practices also require salary data, which can be obtained from numerous sources,
such as the U.S. Bureau of Labor Statistics and compensation studies produced by research institutes and
professional associations, such as the Society for Human Resource Management. In a compensation audit, human
resources staff study occupational groups and individual positions to ensure employees are compensated for
comparable work according to tenure, performance and qualifications.
Management Performance
Supervisor and manager performance audits can be rather subjective; however, they can be done relying on
quantitative measurements such as reviewing employee files to determine the number of times managers provide
employee feedback. Organizations that require regular, ongoing feedback from managers often codify their
requirements in leadership training manuals or within performance standards for managers. Human resource staff
can then review employee files to determine if managers are providing employees with the level of continuous
feedback necessary to maintain performance levels. For example, if managers are required to document employee
feedback at least each quarter, employee files should reflect the frequency of manager-employee interaction.
Auditing employee files determines whether managers are fulfilling their responsibilities to the company and to their
employees.
Legal Fees
The human resources process for auditing compliance with federal and state employment laws includes reviewing
employee relations files. When conducting an audit for compliance with equal employment opportunity policies,
human resource staff examine the types of complaints employees file. They look at complaints related to allegations
of discrimination, harassment and unfair employment practices and compare the number of filed complaints to those
that escalate to formal matters, such as litigation or arbitration.
Employee relations staff responsible for investigating workplace issues are usually knowledgeable of the most
effective ways to audit employee relations matters as well as the best methods for measuring the integrity of an
employee relations program. Overall reduction in legal fees is considered a valid measurement. For instance,
seasoned employee relations specialists who manage the investigation and resolution of employee issues in house
expend less money by not involving legal counsel for every complaint. Auditing the amount spent in legal fees
requires access to employee relations files and human resources budget information for expenditures related to
settling employment disputes.
Employment Eligibility
Employment eligibility audits are common human resources audits whether they are performed in house or by the
U.S. Immigration and Customs Enforcement, the federal bureau responsible for obtaining data related to enforcing
employment eligibility regulations. Documentation necessary for establishing eligibility to work in the United States
includes citizenship information and eligibility records. Personnel files contain copies of federally mandated I-9
forms and copies of supporting documentation. An audit requires access to employment files as well as electronic
submissions, since I-9 verification can be electronically processed.


4.
Discuss the relationship between Human Resource Practices and Performance of
business



Explain the relationship between Human Resource Practices and
Performance of Business
The desire of human resource (HR) practitioners to demonstrate the value of
what they
do for the rest of the organization has a long history. Drucker (1954)
referred to personnel
managers as constantly worrying about their inability to prove that they
are making a
contribution to the enterprise, (p. 275). This has been echoed more recently
by Tom Stewart,
who described HR leaders as being unable to describe their contribution to
value added
except in trendy, unquantifiable and wannabe terms... (Stewart, 1996, p.
105)
In response to these longstanding and repeated criticisms that HR does not
add value to
organizations, the past 10 years has seen a burgeoning of research attempting
to demonstrate
that progressive HR practices result in higher organizational performance.
Huselids (1995)
groundbreaking study demonstrated that a set of HR practices he referred to
as High
Performance Work Systems (HPWS) were related to turnover, accounting profits,
and firm
market value.
Since then, a number of studies have shown similar positive relationships
between HR
practices and various measures of firm performance. For instance, MacDuffie
(1995) found that
bundles of HR practices were related to productivity and quality in his
sample of worldwide
auto assembly plants. Delery and Doty (1996) found significant relationships
between HR
practices and accounting profits among a sample of banks. Youndt, Snell, Dean
and Lepak
(1996) found that among their sample of manufacturing firms, certain
combinations of HR
practices were related to operational performance indicators. More recently
Guthrie (2001)
surveyed corporations in New Zealand and found that their HR practices were
related to
turnover and profitability. This vein of research has been summarized by
Huselid and Becker
who stated Based on four national surveys and observations on more that
2,000 firms, our
judgment is that the effect of a one standard deviation change in the HR
system is 10-20% of a
firms market value
Certainly, the existing research suggests a positive relationship between HR
and
performance. However, contrary to Huselid and Beckers (2000) claim, this
body of work tends
to lack sufficient methodological rigor to demonstrate that the relationship
is actually causal in
the sense that HR practices, when instituted, lead to higher performance.
Little, if any, research
has utilized rigorous designs to test the hypothesis that employing
progressive HRM systems
actually results in higher organizational performance in a causal sense.
The purpose of this study is to provide a more rigorous examination of the
causal order
in the HR practice organizational performance relationship. It uses a
unique sample of
autonomous business units within the same company and explores the
relationships between
HR practices and past, concurrent, and future measures of operational and
financial
Performance
5.
What are the benefits that the employer derives from Employee Referral
Programmes?
Explain the different types of Interview.



Explain the benefits of Employee Referral Programmes.

Explain any six types of Interview
ANSWERS:
Employee referral programme is increasingly becoming popular among companies today. It has rather become a de
rigueur recruitment tool for the companies. Companies are aware of the positive spin-off, employee referral
programme generates. Besides being the most cost effective recruitment tool, referral programs also bring in high
return on investment. Though employee referral programme offers a host of advantages to the organisations, it has
its own share of disquieting consequences.
Companies of all stripes call upon their employees to leverage on their social and networking capital so that they can
rope in their friends and colleagues. To put it succinctly, it is the recruitment method in which the current employees
are encouraged and rewarded for introducing suitable recruits from among the people they know.
Business Implications of Employee Referral Programme
Companies are making concerted efforts to attract and retain top-notch talent. In their frantic bid to retain talent,
companies are betting big-time on employee empowerment and engagement initiatives. In the same breath,
companies are on the cost-cutting spree even as they spread their dragnets to hook the best talent available. In the
light of these developments, employee referral programme is increasingly being perceived as a platform for getting
candidates with a "better-fit."
Quality-Driven Candidate
Cost Savings
Faster Recruitment Cycle
Longer Tenure of Employees
Fosters Cultural Bonding
Easy to Track Results
Eases the Burden of Recruiting Managers
Employee referral programs have long been attributed with numerous benets,
including speedy hires, quality hires, better
performance and retentionall at lower costs than other recruitment options.
Not surprisingly, these known benets have
provided ample motivation for organizations to discover new ways of acquiring
referrals.
As hiring companies continue to seek out solutions, inspiration may be found
in examining the engagement, cultural and
technology trends shaping the ways networks share information. Research into
participant motivations, for instance, may aid
hiring companies in developing strategies that meaningfully engage both
employees and candidates. Meanwhile, emerging
trends in crowdsourcing, collaboration and mobile technologies may help
organizations in designing for systems that better
reect participants new ways of connecting
Why Referral Programs Work
Speedy Hires
Employees begin the process of selling the company to candidates before the
interview, enabling employers to spend less time
promoting both themselves and their positions. Applicants also require less
screening and can advance through the recruitment
process more quickly than other hires.
Quality Hires
Good referrals can reect well on referring employees, motivating them to nd
top candidates and avoid poor performers.
Current employees also hold indispensable knowledge of company culture and
can seek out employees who will be the best t.
Higher Performance
In a study by the MIT Sloan School of Management, researchers found that
employees recruited through referral programs had
signicantly higher performance than those hired through other recruitment
options.
Higher Retention
Provided the initial referrers havent quit, the MIT study noted that
employees who were recruited through referral programs
remained with a company longer than employees recruited through other
recruitment options.
Cost Efectiveness
A survey conducted by SHRM and Referral Networks found that referrals have a
lower cost per hire than other recruitment
options.
An effective employee referral program should be an integral part of any employee
recruiting process. There are many recruiting sources that can be used for your
employee recruiting and it is not necessary to limit activities to any single
source. Referrals from existing employees have been shown to be some of the best
employees. Study after study have shown that employees referred by existing employees
perform better and last longer on average.
There are many benefits from a well designed and implemented employee referral
program in addition to getting better employees. The first area of improvement is a
significantly reduced cost per hire for bring on new employees. Employee recruiting is
expensive. Running ads, posting on-line and using headhunters all cost money. In
many cases multiple sources will be used to build a candidate pool and the costs add up.
But giving existing employees a referral bonus can be much more cost effective. There is
only one payment. Calculate an amount that is both attractive to your employees and
cost effective for the business. A good recommendation is 20-25% of the normal cost
per hire number.
The second benefit of a good program is the program can be a significant morale booster
for existing employees. They are much happier when the money spent on recruiting
stays in the family instead of being spent on outside sources. Existing employees
appreciate the opportunity to make more money while helping the company at the same
time. Everyone benefits from a well-run employee referral program.
Interviews may be classified into following categories :
1. Patterned or Structured Interview : This is the most common method of
interview. It is based on the assumption that to be most effective every pertinent detail
should be worked out in advance. Questions would be asked in a particular order, with
very little deviation. The time to be allowed to each candidate and information to be
sought are predecided. Such interviews are also called standardized interviews, for they
are pre-planned to a high degree of accuracy and precision. Such interview is also
known as directed or guided interview. Patterned interview helps to minimize
personal bias and prejudice and provides uniformity and consistency. It allows for a
systematic coverage of the required information. But such an interview does not allow
keep probing into the candidates mind.
2. Non-Directed or Unstructured Interview : This type of interview is free and is
relatively non-planned as to format. The interview is not directed by questions or
comments as to what the candidate should be asked. Non-directed interview is a more
flexible approach and therefore the candidate feels more at case. Generally, the
candidate is encouraged to express himself on a variety of subjects, on his expectations
and motivations, background and upbringing, interests, etc. The interviewers look for
traits of character and nature of his aspirations and his potentials, strengths and
weaknesses. Thus, a better assessment of the candidates personality becomes
possible. But unless the interviewer is very competent, the discussion may lose its
direction and may become a rambling session with much wastage of time and effort.
3. Informal Interview : Such interview may take place anywhere. It is not planned
and is used when the staff is required urgently. A friend or relative of the employer may
introduce the candidate to the employer, who asks a few basic question like name,
education, experience, etc.
4. Formal Interview : This type of interview is preplanned and is held in a formal
atmosphere. All the formalities and procedures e.g. the venue, the time, the panel of
interviewers, and the questions to be asked are decided in advance.
5. Depth Interview : It is a semi-structure approach wherein details concerning one
key area are sought. It is designed to intensively examine the candidates proficiency in
his area of special interest. The purpose is to get a true picture of the candidate through
deep probing into his mind. This type of interview requires a mature understanding of
human behaviour on the part of the interviewer.
6. Group Interview : In this type of interview, groups rather than individuals are
interviewed. Generally, a topic for discussion is given to the group. The applicants enter
into group discussions, knowing that the interview is a test, but do not know which
qualities are being measured or tested. The candidates in the group are carefully
watched as to who takes a lead in the discussion, who tries influencing others, who
summarises and clarifies issues and who speaks effectively. In this type of interview,
the emphasis is on the analysis of the interviewers impressions from discussions rather
than a factual information. Such interview is based on the assumption that behaviour
displayed in a group situation is related to potential success in the job.
7. Panel Interview : Such interview is conducted by a group of interviewer. It seeks
to pool the collective wisdom and judgement of several interviewers. Question are
asked in turn or at random.
8. Individual Interview : This is also called as one-to-one interview. It is a face to
face interaction between the interviewer and the candidate. It is a two-way
communication and there should be purposeful exchange of ideas.
9. Stress Interview : The purpose of such interview is to find out how a candidate
behaves in a stressful situation i.e. whether he loses his temper, gets confused or
frightened or feels frustrated. The interviewer deliberately puts the candidate on the
defensive by trying on annoy, embarrass or frustrate him. In order to put the candidate
under strain, the interviewer asks questions rapidly, criticizes his answers, interrupts
him frequently and so on.
Such interview must be handled with utmost care and skill. It may not necessarily
reveal how the candidate will behave in a real stressful situation involved in the job.
10. Exit Interview : This type of an interview is conducted by an organisation with
those employees who have put in their resignation papers. It may be conducted on the
last day of employment of the employee. Exit interview helps to find out why the
candidate is resigning from the job.

6.
Write a short note on the following:

a)Flanholtz model(Rewards evaluation model)

b) Pekin Ogan model







Concept and steps involved in Flanholtz model

Concept and steps involved in Pekin Ogan model