HUMAN RESOURCE PLANNING

ACQUIRING HUMAN RESOURCES

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Human Resource Planning

““An effort to anticipate future business An effort to anticipate future business and environmental demands upon and environmental demands upon and organization and to provide and organization and to provide personnel to fulfill that business and personnel to fulfill that business and satisfy that demand”satisfy that demand”

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HUMAN RESOURCE PLANNING

Definition: It is the process by which management Definition: It is the process by which management determines how an organisation should move from its determines how an organisation should move from its current manpower position to its desired manpower current manpower position to its desired manpower position. Through it management strives to have the position. Through it management strives to have the right number and the right kind of people at the right right number and the right kind of people at the right places, at the right time, doing things which result in places, at the right time, doing things which result in both the organisation, and the individual receiving, both the organisation, and the individual receiving,

maximum long-rang benefitmaximum long-rang benefit” ”

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Purpose of HR PlanningPurpose of HR Planning

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The process by which top management determines overall organizational purposes and objectives and how they are to be achieved.

Strategic Planning

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Strategic Importance

Human resources management (HRM): the philosophies, policies, and practices that an organization uses to affect the behaviors of people who work for the organization

Human resources management (HRM): the philosophies, policies, and practices that an organization uses to affect the behaviors of people who work for the organization

Strategic use of HRM activities can improve organizational effectiveness

Strategic use of HRM activities can improve organizational effectiveness

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Objectives of HRP

To ensure optimum use of To ensure optimum use of existing HRexisting HR

To forecast future To forecast future requirements for HRrequirements for HR

To provide control To provide control measuresmeasures

To link HRP with To link HRP with Organizational PlanningOrganizational Planning

To determine levels of To determine levels of Recruitment and Training Recruitment and Training

To estimate cost of Hr To estimate cost of Hr and Housing needs of and Housing needs of EmployeesEmployees

To provide a basis for To provide a basis for MDPMDP

To facilitate productivity To facilitate productivity BargainingBargaining

To meet the needs of To meet the needs of Expansion and Expansion and Diversification Diversification programmesprogrammes

To assess shortage and To assess shortage and surplus of Hrsurplus of Hr

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Need and Importance of HRP To carry on its work To carry on its work

and to achieve its and to achieve its objectivesobjectives

HRP identifies gaps HRP identifies gaps There is need to There is need to

replace employeesreplace employees HRP facilitates HRP facilitates

expansion and growthexpansion and growth HRP helpful in effective HRP helpful in effective

utilization of utilization of HR and Technology HR and Technology

HRP is useful in HRP is useful in anticipating Cost of HR anticipating Cost of HR which facilitates which facilitates budgeting easierbudgeting easier

HRP facilitates Career HRP facilitates Career and succession and succession planningplanning

HRP helps in planning HRP helps in planning for physical facilities like for physical facilities like canteen staff quarters canteen staff quarters etcetc

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Why HRP gained so much focus in recent times…

Employment Employment situationsituation

Technological Technological ChangesChanges

Organizational Organizational ChangesChanges

Demographic Demographic ChangesChanges

Lead timeLead time Hiring costsHiring costs Increased MobilityIncreased Mobility Shortage of SkillsShortage of Skills Legislative ControlsLegislative Controls Pressure GroupsPressure Groups Systems ConceptsSystems Concepts

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Human Resource Planning

Assessing FutureHuman Resource

Needs

Assessing Current Human Resources

Developing aProgram to Meet

Needs

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Human Resource Planning

StrategicFormulation

Strategic Implementation

SWOT tells us how well our workforce is deployed

Deploying human capital is one of ‘musts’ of strategicimplementation

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HR PLANNING PROCESS

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Scanning the External Environment

Environmental ScanningEnvironmental Scanning The process of studying the environment of the The process of studying the environment of the

organization to pinpoint opportunities and threats.organization to pinpoint opportunities and threats.

Environment Changes Impacting HREnvironment Changes Impacting HR Governmental regulationsGovernmental regulations Economic conditionsEconomic conditions Geographic and competitive concernsGeographic and competitive concerns Workforce compositionWorkforce composition

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Internal Assessment of the Organizational Workforce

Auditing Jobs and SkillsAuditing Jobs and Skills What jobs exist now?What jobs exist now? How many individuals are performing each How many individuals are performing each

job?job? How essential is each job?How essential is each job? What jobs will be needed to implement What jobs will be needed to implement

future organizational strategies?future organizational strategies?

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Process of HRP

1. Analyzing Organizational Plans1. Analyzing Organizational Plans

2. Forecasting Demand for HR2. Forecasting Demand for HR

3. Forecasting supply of HR3. Forecasting supply of HR

4. Estimating Manpower Gaps4. Estimating Manpower Gaps

5. Action Planning5. Action Planning

6. Monitoring and Control6. Monitoring and Control

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The HRP Process

Strategic plans &Organizational design

Resultant Labor Demand

Current supply situation (internal & external)

Staffing plans

How many? What quality? Where?

Forecasting

1. Current (internal) supply2. Surplus / shortage?

Implementation methods

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HRP Process

Organizational Objectives

HR Programming

HR Needs Forecast

HR Supply Forecast

HRP Implementation

Control & Evaluation

Surplus - Restricted Hiring, Lay Off, VRS, Reduced Hours

Shortage - Recruitment & Selection

Human Resource Planning ProcessExternal EnvironmentInternal Environment

Strategic Planning

Human Resource Planning

Forecasting Human Resource Requirements

Comparing Requirements and Availability

Forecasting Human Resource Availability

Surplus of Workers

Demand = Supply

No Action Restricted Hiring, Reduced Hours, Early Retirement, Layoff, Downsizing

Shortage of Workers

Recruitment

Selection

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Demand for Labor

Strategy / Design

Demand for X number of employees,of certain types / quality, inparticular parts of organisation

Primary demand for labor

Short term (static) demand

Long term (fluid) demandForecasting

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Labour Supply

Assess internal supply against demand

Based on current supply, is there a shortage / surplus?

Staffing plans

Current supply

Forecasted supply

Surplus:

•Downsizing•Transfers•Work sharing•Retirement•Natural attrition•Retraining

Shortage:

•Overtime•Outsourcing•Retrained transfers•New hires•Technological innovation

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Forecasting HR Supply and Demand

ForecastingForecasting

The use of information The use of information from the past and from the past and present to identify present to identify expected future expected future conditions.conditions.

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Forecasting Methods

JudgmentalJudgmental EstimatesEstimates——asking managers’ opinions, top-down asking managers’ opinions, top-down

or bottom-upor bottom-up Rules of thumbRules of thumb—using —using general guidelinesgeneral guidelines Delphi techniqueDelphi technique——asking a group of expertsasking a group of experts Nominal groupsNominal groups—reaching a group consensus in —reaching a group consensus in

open discussionopen discussion Ratio trend analysisRatio trend analysis Regression analysisRegression analysis Work study techniquesWork study techniques Delphi techniqueDelphi technique

Forecasting HR Supply and Demand …

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Forecasting PeriodsForecasting Periods

Short-termShort-term—less than one year—less than one year IntermediateIntermediate—up to five years—up to five years Long-rangeLong-range—more than five years—more than five years

Forecasting the Supply for Human ResourcesForecasting the Supply for Human Resources

External SupplyExternal Supply Internal SupplyInternal Supply

Forecasting HR Supply and Demand

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Forecasting HR Supply and Demand

Forecasting the Demand for Human ResourcesForecasting the Demand for Human Resources Organization-wide estimate for total demandOrganization-wide estimate for total demand Unit breakdown for specific skill needs by number and Unit breakdown for specific skill needs by number and

type of employeetype of employee Develop decision rules (“fill rates”) for positions to Develop decision rules (“fill rates”) for positions to

be filled internally and externally.be filled internally and externally. Develop additional decision rules for positions Develop additional decision rules for positions

impacted by the chain effects of internal impacted by the chain effects of internal promotions and transfers.promotions and transfers.

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Forecasting HR Supply and Demand

Forecasting External HR SupplyForecasting External HR Supply Factors affecting externalFactors affecting external

Individuals entering and leaving the workforceIndividuals entering and leaving the workforce Individuals graduating from schools and collegesIndividuals graduating from schools and colleges Changing workforce composition and patternsChanging workforce composition and patterns Economic forecastsEconomic forecasts Technological developments and shiftsTechnological developments and shifts Actions of competing employersActions of competing employers Government regulations and pressuresGovernment regulations and pressures Other factors affecting the workforceOther factors affecting the workforce

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Managing Human Resource Surplus or Shortage

Workforce Reductions and the WARN ActWorkforce Reductions and the WARN Act Identifies employer requirements for layoff advance Identifies employer requirements for layoff advance

notice.notice.

60-day notice to employees and the local 60-day notice to employees and the local community before a layoff or facility closing community before a layoff or facility closing involving more than 50 people.involving more than 50 people.

Does not cover part-time or seasonal workers.Does not cover part-time or seasonal workers. Imposes fines for not following notification Imposes fines for not following notification

procedure.procedure.

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Managing Human Resource Surplus or Shortage

Workforce RealignmentWorkforce Realignment

““Downsizing”, “Rightsizing”, and “Reduction in Downsizing”, “Rightsizing”, and “Reduction in Force” (RIF) all mean reducing the number of Force” (RIF) all mean reducing the number of employees in an organization.employees in an organization.

CausesCauses EconomicEconomic - weak product demand, loss of market share to competitors - weak product demand, loss of market share to competitors StructuralStructural - technological change, mergers and acquisitions - technological change, mergers and acquisitions

Positive consequences

Increase competitivenessIncreased productivity

Negative consequences

Loss of specialized skills and experienceLoss of growth and innovation skills 2828

Managing Human Resource Surplus or Shortage

Downsizing approachesDownsizing approaches

Attrition and hiring freezesAttrition and hiring freezes Not replacing departing employees and not hiring new employees.Not replacing departing employees and not hiring new employees.

Early retirement buyoutsEarly retirement buyouts Offering incentives that encourage senior employees to leave the Offering incentives that encourage senior employees to leave the

organization early. organization early.

LayoffsLayoffs Employees are placed on unpaid leave until called back to work Employees are placed on unpaid leave until called back to work

when business conditions improve.when business conditions improve. Employees are selected for layoff on the basis of their seniority or Employees are selected for layoff on the basis of their seniority or

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Assessing HR Effectiveness

Diagnostic Measures of HR EffectivenessDiagnostic Measures of HR Effectiveness

HR expense per employeeHR expense per employee Compensation as a percent of expensesCompensation as a percent of expenses HR department expense as a percent of total expensesHR department expense as a percent of total expenses Cost of hiresCost of hires Turnover ratesTurnover rates Absenteeism ratesAbsenteeism rates Worker’s compensation per employeeWorker’s compensation per employee

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HR Evaluation

Process

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Assessing HR Effectiveness

HR AuditHR Audit

A formal research effort that evaluates the current state of HR management in A formal research effort that evaluates the current state of HR management in an organizationan organization

Audit areas:Audit areas: Legal compliance (e.g., Legal Audits, ISO etc)Legal compliance (e.g., Legal Audits, ISO etc) Current job specifications and descriptionsCurrent job specifications and descriptions Valid recruiting and selection processValid recruiting and selection process Formal wage and salary systemFormal wage and salary system • • BenefitsBenefits Employee handbookEmployee handbook Absenteeism and turnover controlAbsenteeism and turnover control Grievance resolution processGrievance resolution process Orientation programOrientation program • • Training and developmentTraining and development Performance management systemPerformance management system

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Using HR Research for Assessment

HR ResearchHR Research The analysis of data from HR records to determine the The analysis of data from HR records to determine the

effectiveness of past and present HR practices.effectiveness of past and present HR practices.

Primary ResearchPrimary Research Research method in which data are gathered first-hand for the Research method in which data are gathered first-hand for the

specific project being conducted.specific project being conducted.

Secondary ResearchSecondary Research Research method using data already gathered by others and Research method using data already gathered by others and

reported in books, articles in professional journals, or other reported in books, articles in professional journals, or other sources.sources.

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HR Performance and Benchmarking

BenchmarkingBenchmarking Comparing specific measures of Comparing specific measures of

performance against data on those performance against data on those measures in other “best practice” measures in other “best practice” organizationsorganizations

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JOB ANALYSIS &

HUMAN RESOURCE PLANNING

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Definitions

Job - Consists of a group of tasks that must be performed for an organization to achieve its goals.

Position - Collection of tasks and responsibilities performed by one person; there is a position for every individual in an organization.

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Job Analysis

A Basic Human Resource Management Tool

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Tasks Responsibilities Duties

Job Analysis

Job Descriptions

Job Specifications

Knowledge Skills Abilities

Human Resource Planning

Recruitment

Selection

Training and Development

Performance Appraisal

Compensation and Benefits

Safety and Health

Employee and Labor Relations

Legal Considerations

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Definitions

Job analysis - Systematic process of determining the skills, duties, and knowledge required for performing jobs in an organization.

Job description – document providing information regarding tasks, duties, and responsibilities of job.

Job specification – minimum qualifications to perform a particular job.

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Job Analysis

Job analysis is a formal and detailed study of Job analysis is a formal and detailed study of jobsjobs

It refers to a scientific and systematic analysis It refers to a scientific and systematic analysis of a job in order to obtain all pertinent facts of a job in order to obtain all pertinent facts about the jobabout the job

It is essentially a process of collecting and It is essentially a process of collecting and analyzing all pertinent data relating to a jobanalyzing all pertinent data relating to a job4040

Objectives of Job Analysis Job RedesignJob Redesign Work StandardsWork Standards RecruitmentRecruitment SelectionSelection TrainingTraining Performance appraisal Performance appraisal Job evaluationJob evaluation Safety Safety

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Benefits of Job Analysis

1. Organizational Design1. Organizational Design

2. Human Resource Planning2. Human Resource Planning

3. Recruitment and Selection3. Recruitment and Selection

4. Placement and Orientation4. Placement and Orientation

5. Training and Development5. Training and Development

6. Performance Appraisal6. Performance Appraisal

7. Career Path planning7. Career Path planning8. Job Design8. Job Design9. Job Evaluation9. Job Evaluation10 Labor Relation10 Labor Relation11. Employee Counseling11. Employee Counseling12. Health and Safety12. Health and Safety

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The process of Job Analysis

1. Organisational Analysis1. Organisational Analysis2. Organising Job Analysis Programme2. Organising Job Analysis Programme3. Deciding the uses of Job Analysis Information3. Deciding the uses of Job Analysis Information4. Selecting Representative Jobs for analysis4. Selecting Representative Jobs for analysis

5. Understand Job Design5. Understand Job Design

6. Collection of Data6. Collection of Data

7. Developing a Job Description7. Developing a Job Description

8. Preparing a Job Specification 8. Preparing a Job Specification

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Differentiate between

Job DescriptionJob Description

Job Description is a Job Description is a functional description of functional description of what the job entails. And what the job entails. And define the purpose and define the purpose and scope of a job. It is a scope of a job. It is a written record it contains written record it contains title, location, duties, title, location, duties, responsibilities, working responsibilities, working conditions, hazards and conditions, hazards and relationship with other relationship with other jobs.jobs.

Job SpecificationJob Specification

Job specification is a Job specification is a statement of the minimum statement of the minimum acceptable human qualities acceptable human qualities required for the proper required for the proper performance of a job. performance of a job.

It includes physical, It includes physical, mental, social, mental, social, psychological and psychological and behavioral characteristics behavioral characteristics of a personof a person

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Job Evaluation Job evaluation is “the process of analysis and Job evaluation is “the process of analysis and

assessment of jobs to ascertain reliably their assessment of jobs to ascertain reliably their relative worth using the assessment as the relative worth using the assessment as the basis for a balanced wage structure.” basis for a balanced wage structure.”

Job evaluation begins with job analysis and Job evaluation begins with job analysis and ends up with the classification of jobs ends up with the classification of jobs according to their worth. A job cannot be according to their worth. A job cannot be evaluated unless and until it is analyzed.evaluated unless and until it is analyzed.

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Job evaluation is Job evaluation is aimedaimed at determining a job’s at determining a job’s relative worth. It is a formal and systematic relative worth. It is a formal and systematic comparison of jobs to determine the worth of comparison of jobs to determine the worth of one job relative to another, and eventually one job relative to another, and eventually result in a wage or salary structure or result in a wage or salary structure or hierarchy.hierarchy.

The basic The basic principleprinciple of job evaluation is that:- of job evaluation is that:- Jobs that require greater qualifications, more Jobs that require greater qualifications, more responsibilities, and more complex job duties responsibilities, and more complex job duties should be paid more highly than jobs with should be paid more highly than jobs with lesser requirements.lesser requirements.

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Objectives of Job evaluation

1. To Determine equitable wage differentials between 1. To Determine equitable wage differentials between different jobs in the organizationdifferent jobs in the organization

2. To eliminate wage inequities2. To eliminate wage inequities

3.To develop a consistent wage policy3.To develop a consistent wage policy

4. To provide a framework for periodic review and 4. To provide a framework for periodic review and revision of wagesrevision of wages

5. To provide a basis for wage negotiations5. To provide a basis for wage negotiations

6. To enable management to gauge and control the payroll 6. To enable management to gauge and control the payroll costscosts

7. To minimize wage descriptions on the basis of age, sex, 7. To minimize wage descriptions on the basis of age, sex, caste, region, religion , creed etc caste, region, religion , creed etc

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Preparing for the job evaluation

Identify the need for job evaluation should Identify the need for job evaluation should not be difficultnot be difficult

Getting employees to cooperate in the Getting employees to cooperate in the evaluation of their jobs.evaluation of their jobs.

Choose a job evaluation committee.Choose a job evaluation committee.

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By Nadeem The KillerGr.7B

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