Anything HR Solutions

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

After this only the HRM department can initiate the recruitment and selection process

Its called by manpower planning, personal planning or employment planning

• It includes the estimation of how many qualified people are necessary to carry out the assigned activities, how many people will be available, and what, if anything, must be done to ensure that personal supply equals personnel demand at the appropriate point in the future.

• Basically it’s the process by which an organization ensures that it has the right number & kind of people, at the right place, at the right time, capable of effectively & efficiently completeing those tasks that will help the organisation achieve its overall objectives.

1. FUTURE PERSONNEL NEEDS• Surplus or deficiency in staff strength• Results in the anomaly of surplus labour with the lack

of top executives2. COPING WITH CHANGE

• Enables an enterprise to cope with changes in competitive forces, markets, technology, products & government regulations

3. CREATING HIGHLY TALENTED PERSONNEL• HR manager must use his/her ingenuity to attract &

retain qualified & skilled personnel• Succession planning

4. PROTECTION OF WEAKER SECTIONS• SC/ST candidates, physically handicapped, children of

the socially disabled & physically oppressed and backward class citizens.

5. INTERNATIONAL STRATEGIES• Fill key jobs with foreign nationals and re-

assignment of employees from within or across national borders

6. FOUNDATION FOR PERSONNEL FUNCTIONS• Provides information for designing &

implementing recruiting, selection, personnel movement(transfers, promotions, layoffs) & training & development

7. INCREASING INVESTMENTS IN HUMAN RESOURCES• Human assets increase in value

8. RESISTANCE TO CHANGE AND MOVE• Proper planning is required to do this

9. OTHER BENEFITS• Upper management has a better view of

the HR dimensions of business decision• More time is provided to locate talent• Better opportunities exist to include

women & minority groups in future growth plans

• Better planning of assignments to develop managers can be done

I. TYPE & STRATEGY OF ORGANISATION

Internal growth

Informal

Inflexible

Growth through M & A

Reactive

Flexible

Proactive

Formal

II. ORGANIZATIONAL GROWTH CYCLES & PLANNING• Embryonic stage – No personnel planning• Growth stage – HR forecasting is essential• Maturity stage – Planning more formalized &

less flexible• Declining stage – Planning for layoff,

retrenchment & retirement

III. ENVIRONMENTAL UNCERTAINITIES• Political, social & economic changes• Balancing programmes are built into the HRM

programme through succession planning, promotion channels, layoffs, flexi time, job sharing, retirement, VRS, etc….

IV. TIME HORIZONS• Short-term & Long-term plans

V. TYPE & QUALITY OF FORECASTING INFORMATION• Type of information which should be used in

making forecasts

VI. NATURE OF JOBS BEING FILLED• Difference in employing a shop-floor worker &

a managerial personnel

VII. OFF-LOADING THE WORK

ENVIRONMENT

ORGANISATIONAL

OBJECTIVES AND POLICIES

HR NEEDS FORECAST HR SUPPLY FORECAST

HR PROGRAMMING

HRP IMPLEMENTATATION

CONTROL AND

EVALUATION OF PROGRAMME

SURPLUS SHORTAGE

RESTRICTED HIRING RECRUITMENT

REDUCED HOURS AND SELECTION

VRS, LAY OFF, etc

THE HRP PROCESS

HR plans need to be based on Organizational Objectives.

The role of HRP is to subserve the overall objectives by ensuring availability and utilization of Human Resources.

In developing these objectives, specific policies need to be formulated to address the following questions: Are vacancies to be filled from promotions from within

or hiring from outside? How do training and development objectives interfere

with the HRP objectives? What union constraints are encountered in HRP and

what policies are needed to handle these constraints? How to enrich employees job? Should the routine and

boring jobs continue or be eliminated? How to downsize the organization to make it more

competitive?

Demand forecasting is the process of estimating the future quantity and quality of people required.

The basis of the forecast must be the annual budget and long-term corporate plan, translated into activity levels for each function and department

Demand forecasting must consider several factors both internal and external. Among external factors are

competition(foreign and domestic), economic climate, laws and

regulatory bodies, changes in technology and social factors. Internal factors include budget constraints,

production levels, new products and services, organizational structure and employee

separation.

Demand forecasting helps to :Quantify the jobs necessary for producing a given

number of goodsPrevent shortage of people where and when they

are needed mostDetermine what staff-mix is desirable in the futureMonitor compliance with legal requirements with regard to reservation of jobs Asses appropriate staffing levels in different parts of the organization so as to avoid unnecessary costs

Managerial judgement Ratio-trend analysis Work study techniques Delphi technique Flow models Other techniques

In this all managers sit together, discuss and arrive at a figure which would be the future demand for labour.

This technique may involve a ‘bottom-up’ or ‘top-down’ approach. A combination of both could yield positive results.

This is the quickest forecasting technique.

This technique involves studying past ratios, say, between the number of workers and sales in an organization and forecasting future ratios, making some allowance for changes in the organization or its method.

Work study techniques can be used when it is possible to apply work measurement to calculate the length of operations and the amount of labour required.

• This technique is the method of forecasting personnel needs.

• It solicits estimates of personnel needs from a group of experts, usually managers.

• The HRP experts act as intermediaries, summarize the various responses and report the findings back to the experts.

• Summaries and surveys are repeated until the experts opinion begin to agree.

Supply forecasting measures the no of people likely to be available from within and outside an organisation,after making allowance for absenteeism, internal movements and promotions, wastage and changes in hours and other conditions of work.

Quantify no of people and positions expected in near future.

Clarify the staff mixes. Prevent shortage of people Asses present staffing levels in different

parts of organization.

Existing human resources

Internal sources of supply

External sources of supply

• Skill inventories – info about non-managers.

1. Personal data 2. Skills 3. Special qualifications 4. Salary and job history 5. Company data 6. Capacity of individual 7. Special preference of individual

• Management inventories 1. Work history 2. Strengths 3. Weakness 4. Promotion potential 5. Career goals 6. Personal data 7. Number and types of employees

supervised 8. Total budget managed 9. Previous management duties.

HR planning and analysis Equal employment Staffing HR development Compensation and benefits Health,saftey and security Employee and labor relations

Inflows and outflows IS= current supply – outflow + inflow

Turnover rate No of seperations during one year

× 100 Avg no of employees during the year

Conditions of work and absenteeism. Absenteeism is given by no of persons – days lost

×100 Avg no of persons × no of working days

Productivity level

Movement among jobs

New blood and new experience

To replenish old personnel

Organizational growth and diversification

After personal demand and supply are forecast the vacancies should be filled at right time with right employees.

Converting HR plan into action. Action programmes are..

Recruitment Selection & placement Training and development Retraining & redeployment The retention plan The redundance plan The succession plan

RecruitmentSelection & placement

If Shortage of employees- Do-

Hire new full-time employeesOffer incentives for postponing retirement Re-hire retired employees on part-time

basisAttempt to reduce turnoverBring in over-time for present employeesSubcontract work to another companyHire temporary employeesRe-engineer to reduce needs

If surplus of employees is expected-Do-

Do not replace employees who leaveOffer incentives for early retirementTransfer or reassign excess employeesUse slack time for employees training or

equipment maintenanceReduce work hoursPay off employee

It covers no. of trainees required It necessary for existing staff Identification of resource personal for

conducting development programmes Frequency of training and development

programmes Budget allocation

Retraining and redeployment:New skill should be imported to existing

employee

Retention plan: Compensation plan Performance appraisal Employees leaving in search of green pastures The induction criss Shortages Unstable recruits

Who is to be redundant and where and when

Plans for re-development or re-training Steps to be taken to help redundant

employees finding new jobs Policy for declaring redundancies Programme for consulting with unions or

staff associations

Analysis of demand Audit of existing executives Planning of individual career path Career counseling Accelerated promotions Performance related training and

development Planned strategic recruitment Filling the openings

Establish the reporting procedures Identifying who are in post and those

who are in pipe line It should report employment costs

against budget and trends in wastage and employment ratios

Institute of Applied Manpower Research

Requisites for successful HRPRecognize of corporate planningBacking of top management for HRPHRP responsibilities should be centralizedPersonnel record must be complete, up-date

and readily availableThe time horizon of plan should be long for

remedial actionThe techniques of planning should be best suitPlans should be prepared by skill levelData collection, analysis, techniques of planning

should be constantly revised

People question the importance of making HR practices future oriented and role assigned to HR practitioners in formulation of organizational strategies

HR practitioners are perceived as expert in handling personnel matters, but are not experts in managing business.

HR information often is incompatible with the information used in strategy formulation.

Conflicts may exist between short term and long term HR needs.

Conflicts between quantitative and qualitative approaches to HRP.

Non-involvement of operating managers renders HRP ineffective.