Post on 01-Nov-2014
Embed Size (px)
DESCRIPTIONSuitable for B.Com(h) students .
HUMAN RESOURCES PLANNING
MCDONALDS: A CASE IN POINT.
McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries. McDonald's operates over 34,000 restaurants worldwide, employing more than 1.7 million people It serves 64 million customers daily.
McDonald's hires around 1 million workers in the US every year For the next three years, McDonald's is going to open one restaurant every day in China McDonald's India now has a network of over 250 restaurants across the country which it sets to double in the coming future.
HR PLANNING WILL HELP : Creating training programs for the staff as the staff for example in the till need to serve customer fast 1 to 3 customers a minute also they need to have a good customer service. Build
up promotion and career development strategies which will benefit both the staff and the organization
redundancy as this can affect the other workers they will be de-motivated and it will give a bad image to the organization
a flexible workforce to meet up with the changing requirement and environment the staff wages and salaries while in the mean times guaranteeing the competitiveness of the salaries
future necessities from equipments, knowledge, technology and premises
RECRUITMENT AND SELECTION PROCESS
The recruitment process of McDonalds for example crew members consist of two steps application.
1.Online application which consist of filling in the information that the candidate is asked to do online which include personal details, previous work experiences, qualifications, and plus a questionnaire that put the candidate in real life situation for example if the customer complain about something what will be the reaction. 2.Is the candidate have successfully passed the first online step, he or she will be invited to the restaurant for an OJE (On Job Evaluation) and a face to face interview.
With the OJE which only last 15 minutes the manager will give the applicants tasks to do so he or she can see how the candidate perform in real life situation and the manager evaluate the candidate customer service and skills and then he or she reflected against what they are looking for in a candidate. And then after that the candidate will have an interview with the business manager
MEANING OF HR PLANNING
It is the process of deciding what positions the firm will have to fill and how to fill them. It covers all the firms future positions Its an integral part of the firms strategic process HR Planning is the process by which an organization has the right number and kind of people at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives.
5 KEY QUESTIONS IN HR PLANNING
How many employees do we need? What are we looking for in terms of skills , knowledge , experience , abilities etc. Where do we need the employees- location, division, department
When do we need the employees ?How long do we need them for?
FEATURES OF HR PLANNINGForward Looking : it tries to asses the requirements in advance keeping the prod schedules , market fluctuations , dd forecasts in the background. In sync with organizational needs: the HR Plan is subject of revision and is tuned to the requirements of an organization from time to time. Proactive :Internal as well as external changes impacting the organization are assessed proactively from time to time so that HR Plan would fit in with the strategic business objectives. Get qualified people at the right time: HR Plans are prepared for varying time periods i.e. short term plans covering a time frame of 2 years and long term plans encompassing a period of 5 or more years.
Forecast personnel requirements: HR Planning is essentially to determine the future manpower needs in an organization Cope with changes: changes in market conditions, technology, products and government regulations require services of people with requisite knowledge and training. In the absence of an HR Plan we may not be able to enlist their services Use existing manpower productively: it helps decrease wage and salary cost in the long run Promote employees in a systematic manner
Reservoir of talent Prepare people for future
Expand or ContractCut Costs Succession Planning
HR Planning ProcessDetermine the objectives of HR Planning
Preparation of Skill InventoryDemand Forecasting Supply Forecasting Gap Analysis Action plan Employment Plan
Training and development Program
OBJECTIVES OF HR PLANNINGThe ultimate purpose of HR Planning is to relate future human resources to future enterprise needs so as to maximize the future returns on investment in human resources The purpose of setting specific quantitative goals is to focus attention on the problem and provide a benchmark for determining the relative success of any program aimed at redressing a pending labor shortage or surplus. Eg: Goal to increase the no. of sales representative job category in the next 3 years HR Planning must be integrated with the overall plans of the company.
SKILL INVENTORYAnalysis of current skill inventory may be undertaken .It helps in designing recruitment and development plans to meet the need of certain skills in the future The search for talented employees in the organization must be continuous There must be a detailed record of the manpower inventory available in the organization It will provide a foundation for individual development and reveal scarcity or non availability of certain talents for which outside sources of manpower may be tapped.
DEMAND FORECASTINGIts the process of determining the requirements of different kinds of personnel in future. The basis of HR forecasts should be annual budget and long term corporate goals translated into activity levels for each function and department. Eg:In a manufacturing Co. the sales budget would be translated into a manufacturing plan giving the no. and types of product to be made in each period. From this information the no. of manhours required for each period is calculated.
The external factors affecting demand forecasting need to be kept in mind such as : Economic influences, political factors, legal factors, competitive moves etc.
The major determinants of future hr demand are: Employment Trends Replacement Needs Productivity Changes Absenteeism Growth and Expansion
FORECASTING TECHNIQUES1) Managerial Judgment: It requires managers to think about their future work loads and decide how many people they need. There can be two types of approaches : top down and bottoms up 2) Work Study Technique: can be used when it is possible to apply work measurements to know how long operations should take and the amount of labour required : Work load analysis : the HR needs to find out sales forecasts , work schedules and thus determine the manpower required per unit of the product.
The departmental workload are converted into man hours in terms of different skills required.
Illustration: Annual Production Budget of a Company: 3,60,000units Standard Manhours required per unit: 2hrs Annual Contribution of a worker : 2000hrs
What is the no. of workers required?Ans: Planned Manhours for the year: 3,60,000 * 2 = 720000hrs No. of workers required = 720000/2000 = 360
This figure is subject to change due to factors such as breakdown of machine, strike, lockouts etc. Workforce Analysis : It involves keeping a sufficient margin for absenteeism and labour turnover and idle time on the basis of past experience Eg: it may me necessary to keep a margin of 20% of the workforce in that case atleast 432 workers need to be on the companys payroll to meet the production targets
3) Statistical Techniques :
Trend Analysis : study of a firms past employment needs over a period of years to predict future
Ratio Analysis: based on ratio between causal factor ( sales volume) and no. of employees required (no. of sales people)
Eg: Estimated production for next year =1,40,000 units Ratio Trend: 1:200 Estimated no. of workers needed will be = 700
Econometrics Model: 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 Regression Analysis : Past levels of various work load indicators, such as sales, production levels, and value added, are examined for statistical relationships with staffing levels. Where sufficiently strong relationships are found, a regression (or multiple regression) model is derived
Statically identify historical predictor of workforce sizeExample: FTEs = a + b1 sales + b2 new customers
Predict future HR requirements, using equation Example:
(a) FTEs = 7 + .0004 sales + .02 new customers(b) Projected sales = $1,000,000 Projected new customers = 300 (c) HR requirements = 7 + 400 + 6 = 413
Bureks-Smith Model: mathematical model for personnel forecasting based on selected key variables that affect the organisations overall HR needsEn = [(Lagg + G) 1/X] Y Where, En = Estimated human resource demand n = Planning period Lagg = Overall turnover or aggregate level of business activity in Rupees G = Total growth in business activity during period n X = Average improvement in productivity Y = Conversion figure that relates the present overall activity to the human resource needed
4) Delphi TechniqueA series of questions is individually a