HUMAN RESOURCES

PLANNING

HUMAN RESOURCES

MANAGEMENT

By Abdullah Patoli

HUMAN RESOURCE PLANNING

Human Resources Planning is both a process and a set of plans which allows organizations to assess the future supply of and demand for human resources.

HRP is a sub-sytem in the total organizational planning.

Organizational planning includes managerial activities that sets the company’s objectives for the future and determine the appropriate means for achieving those objectives.

IMPORTANCE OF HRP

Future personnel needs (Surplus pool/shortage)

Part of Strategic Planning

Creating Highly Talented Personnel (MBAs/Engineers/Technicians)

Protection of Weaker Sections

IMPORTANCE OF HRP

International Strategies : (Expansion)

Foundation for Personnel Functions

Cut on Personnel Cost :

(Through appropriate manpower budget)

IMPORTANCE OF HRP

Succession Planning : ‘Hot List’ of promising candidates

Expanding or Contracting Strategies

Minimizing the risk of losing

FACTORS AFFECTING HRP

Type & Strategy of Organization(Manufacturing/Service,Mergers/Acquisitions)

Environmental Uncertainties

Time Horizons

FACTORS AFFECTING HRP

Type & Quality of Information

Management Support

Numbers’ Game

HRP PROCESS MODELFour (4), common features of any HR Planning :

1) Situational Analysis

2) Forecasting of Demand for Human Resources

3) Analysis of the Supply of Human Resources

4) Development of Plans for Action

(Matching the Demand & Supply of Labor)

HRP PROCESS MODEL

1. SITUATIONAL ANALYSIS AND

ENVIRONMENTAL SCANNING :

HRP PROCESS MODEL

2. FORECASTING DEMAND FOR HR: Estimates not only how many but also what kind of employees will be needed.

CAUSES OF DEMAND FOR HUMAN RESOURCES:

EXTERNAL ORGANIZATIONAL WORK FORCE RELATED

HRP PROCESS MODEL

CAUSES OF DEMAND contd…

EXTERNAL:

ECONOMIC (Unemployment/Inflation) SOCIO-POLITICAL/LEGAL (Labor Laws) TECHNOLOGY COMPETITION

HRP PROCESS MODELCAUSES OF DEMAND

contd…

ORGANIZATIONAL:

STRATEGIC PLANS BUDGETS SALES & PRODUCTION FORECASTS ORGANIZATIONAL & JOB DESIGN

HRP PROCESS MODEL

CAUSES OF DEMAND contd…

WORKFORCE:

RETIREMENT TERMINATION DEATH LEAVE OF ABSENCE

HRP PROCESS MODEL ASSESSING CURRENT HUMAN RESOURCES:

Detailed Human Resources Inventory Report:

The input to this report is derived from Forms completed by employees, and checked by supervisors.

The report is valuable for HRM activities.

The report, being complete profile of the candidates, can help combat current/future threats to co.’s goals.

HR Information/Management System

This is HRM database keeping employees information in central and accessible location.

This helps when management needs timely information on its people.

Replacement Charts/Summary

Its is a senior management inventory report.

It facilitates succession planning

It is a visual representation of who will replace whom .

HRP PROCESS MODEL

FORECASTING DEMAND FOR HUMAN RESOURCES:

Attempts to predict an organization’s future demand for employees

Involves a great deal of human judgment

Knowing strategic direction of the firm is a ‘Must’ for planners

HRP PROCESS MODELMETHODS OF FORECASTING:

1)EXPERT FORECAST :NOMINAL GROUP TECHNIQUE

DELPHI TECHNIQUE

2) TREND PROJECTIONS :EXTRAPOLATION

HRP PROCESS MODELMETHODS OF FORECASTING:1) EXPERT FORECAST : Based on the judgments of senior most staff of the concerned dept/function.

In large organizations, surveys are conducted.

NOMINAL GROUP TECHNIQUE : Involves brainstorming session with an attempt to get every body on board.

All the participants write down the answers which are shared in round-robin fashion. The group ideas are then discussed and ranked by having ach member to vote for the three to five most important ones.

DELPHI TECHNIQUE : If consensus is not achieved than a survey is used and the HR manager acts as an intermediary.

HR manager summarizes the findings and reports back to the experts. Summaries and surveys are repeated until the experts begin to agree on future developments.

2) TREND PROJECTIONS : The quickest forecasting technique to project past trends.

EXTRAPOLATION : Involves extending past rates of change into future.

HRP PROCESS MODEL

3. ANALYSIS OF THE SUPPLY OF HR

TWO SOURCES OF SUPPLY:

INTERNAL EXTERNAL

HRP PROCESS MODELSOURCES OF SUPPLY:

INTERNAL: TRANSFERS/PROMTIONS/DEMOTIONS

SKILLS INVENTORY REPLACEMENT CHARTS

HUMAN RESOURCES AUDITS :

‘Skill Inventories’ (Non managers) ‘Management Inventories’ (For Managers)

HRP PROCESS MODELSOURCES OF SUPPLY:

EXTERNAL:

EXTERNAL NEEDS LABOR MARKET ANALYSIS GUEST WORKERS OCCUPATIONAL OUTLET

HANBOOK

HRP PROCESS MODEL4. DEVELOPING PLANS FOR ACTIONS:

(MATCHING THE DEMADN & SUPPLY OF LABOR)

DEAMD AND SUPPY FORECASTS ARE COMPARED

ACTION IS TAKEN IF THERE IS A DESCREPANCY

IF SUPPLY < DEMAND THAN, OVERTIME TRAINING OR PROMOTION RECALLING EMPLOYEES

HRP PROCESS MODEL4. DEVELOPING PLANS FOR ACTIONS:

(MATCHING THE DEMADN & SUPPLY OF LABOR)

IF SUPPLY > DEMAND THAN,

EARLY RETIREMENT DEMOTION LAYOFFS TERMINATIONS

DISTURBING FACTS!In the UK for example, professional bodies like the UK

Chartered Institute for Personnel and Development issues a code on the recruitment process. Publications made by the UK Equal Opportunities Commission also inform employers about the Fair and Efficient Selection process.

New regulation policies of governments concerning social (discrimination and gender equality), political (protectionist policies) and economic (trade liberalization and tariffs) issues force organizations to rethink and reshape their human resource policies and existing practices.

LABOR STATISTICS BUREAU PAKISTAN

Publications: Calendar of important regular releases Census of Manufacturing Industries

2000 -01 Census of Mining & Quarryi ng

Industries (CMQI) 2004 -05 Compendium on Gender Statistics in

Pakistan Compendium on Environment Statistics

of Pakistan 2004 Economic Census 2005 Household Integrated Economic Survey

(HIES) 2005 -2006 Labor Force Survey 2001-02

Labor Force Survey 2006-07 Labor Force Survey 2007-08 Monthly Statistical Bulletin March -April 2007 National Accounts of Pakistan -Rebasing from 1980-81 to 1999 -2000 NationalEducationCensus 2005 National Health Accounts Pakistan 2005 -06 News Letter, March 2009 Pakistan Demographic Survey 2005 Pakistan ICT Indicators Pakistan Statistical Year Book 2007 Pakistan Statistical Year Book 2008 Pakistan Statistical Pocket Book 2006 Pakistan Social and Living Standards Measurement Survey (PSLM) -

2004-05 (Provincial / District) Pakistan Social and Living Standards Measurement Survey (PSLM) -

2004-05 Pakistan Social and Living Standards Measurement Survey (PSLM) -

2005-06

VIRTUAL HRMVirtual HRM provides a Human Resources Service to organisations

who require specialist human resources expertise without the investment

of hiring a permanent Human Resources specialist.

Dow Chemicals, ABN AMRO, Ford Motor Company, IBM, and Motorolla

, Belgacom, all of them have been on the ‘E-HR road' for a number of

years, and in a variety of ways.

Accenture helped Motorola employees self-manage their human resources

processes and transactions through Enet, an Intranet-based virtual HR

solution that is integrated with Motorola's back-end SAP HR system.

Challenges Ahead !

 Trapp (2000) writes about a study undertaken by the Cranfield School of

Management's researchers Andrew and Nada Kakabadse on Outsourcing. According to Trapp, these researchers believe that the HR function in the future will be the prime target for outsourcing. http://findarticles.com/p/articles/mi_qa5454/is_200407/ai_n21359651/pg_5/?tag=content;col1

E-HRM does not mean that users simply have to learn to work with a new version of a familiar system, but rather that employees and line managers have to be ready, able and willing to pick up responsibilities that were previously someone else's. This really does require a change in mindset!

However, not all employees are willing to pick up the full responsibility for their personal career development through the available web based HR tools.

Challenges Ahead !

 At Belgacom, the publication of personal information through

the HR intranet was complicated by the Belgian law on privacy. At Fords, in Germany, the project team hinted at the wide diversity in the nationalities of employees working for Ford; but at the same time warned us not to ask questions that could be related to the issues of different nationalities, cross-cultural differences, etc. Such issues were considered by the Works Council as sensitive.

Guaranteeing the security and confidentiality of input data is an important issue for employees in order that they should feel 'safe' when using web-based HR tools.