od and changes

8/7/2019 OD and CHANGES

1/24


2/24


3/24

WHAT IS HRP

Human Resource Planning is a process offorecasting an organization's future demand, for

human resource and supply of right type ofpeople in right numbers.

J.Chennly.K


4/24

WHAT IS HR PLANNING ?

Right number of people

With right skills

At right place

At right time To implement organizational strategies in order

to achieve organizational objectives


5/24

WHAT IS HR PLANNING ?

Settinghuman resource objectives and deciding

how to meet them

EnsuringHR resource supply meets human

resource demands

It is only after HumanResource Planningthat the

Human Resource department can initiate therecruitment and selection process.


6/24

HRP PROCESS

- Interfacingwith strategic planningand scanningthe

environment

Takingan inventory of the companys current human

resources

Forecastingdemand for human resources

Forecastingthe supply of HR from within the

organization and in the external labour market

Comparingforecasts of demand and supply

Planningthe actions needed to deal with anticipated

shortage or overages

Feedingback such information into the strategic

planningprocess


7/24

NEED FOR HUMAN RESOURCE PLANNING

Shortage ofSkills

Frequent Labour Turnover

Changingneeds of technology: Identify areas of surplus or shortage of

personnel

Changes in organisation design and structure


8/24

FACTORS AFFECTING HUMAN RESOURCE

PLANS

Government policies:

Policies of the government like labour policy, industrial

policy, policy towards reservingcertain jobs for different

communities and sons-of-the-soil etc affect HumanResource Planning.

Level of economic development:

Level of economic development determines the level of

human resource development in the country and therebythe supply of human resources in the future in the country.


9/24


PLANS

Information Technology:

Information technology brought amazingshifts in the way

business operates. These shifts include business process

reengineering, enterprise resource planningand SupplyChain Management. These changes brought unprecedented

reduction in human resource and increase in software

Level of Technology:

Technology is the application of knowledge to practical

tasks which lead to new inventions and discoveries. The

invention of the latest technology determines the kind of

human resources required.


10/24


PLANS

Business Environment:

Business environment means the internal and

external factors influencingthe business. Business

environmental factors influences the volume of mix of

production and thereby the supply of human resources

in the future in the country.

International factors: International factors like the demand and supply of

Human resources in various countries also affects

Human Resource Planning.


11/24


PLANS

Company Strategies:

The organization's policies and strategies relating

to expansion, diversification etc. determines the

human resource demand in terms of Quantity andQuality

Human Resource policies:

Human Resource policies of the company regarding

quality of human resources, compensation level, quality ofworkingconditions etc. influence Human Resource

Planning.


12/24


PLANS

Job analysis: Job analysis means detailed study of the job includingthe skills

needed for a particular job. Human Resource Planningis basedon job analysis which determines the kind of employees to be

procured. Time Horizon:

Companys planningdiffers accordingto the competitiveenvironment i.e. companies with stable competitive environmentcan plan for the longrun whereas firms without a stableenvironment can only plan for short term. Therefore, when there

are many competitors enteringbusiness/ when there is rapidchange in social and economic conditions of business/ if there isconstant change in demand patterns/ when there exists poormanagement practice, then short term planningis adopted orvice-versa for long-term planning


13/24


PLANS

Type and Quality of Information:

Any planningprocess needs qualitative and accurateinformation about the organisational structure, capitalbudget, functional area objectives, level of technology being

used, job analysis, recruitment sources, retirement plans,compensation levels of employees etc. Therefore HumanResource Planningis determined on the basis of the typeand quality ofinformation.

Companys production and operational policy

Companys policies regardinghow much to produce and howmuch to purchase from outside in order to manufacture the finalproduct influences the number and kind of people required


14/24


PLANS

Trade Unions:

If the unions declare that they will not work for more than 8 hoursa day, it affects the Human Resource Planning. Therefore influence oftrade unions regardingthe number of workinghours per week,

recruitment sources etc. Affect Human Resource Planning. Organizational Growth Cycles:

At startingstage the organization is small and the need ofemployees is usually smaller, but when the organization entersthe growth phase more youngpeople need to be hired.

Similarly, in the declining/recession/downturn phase HumanResource Planningis done to re-trench the employees.


15/24

PROBLEMS WITH HUMAN RESOURCE

PLANNING Inadequacies in quality ofinformation:

Reliable information about the economy, other industries,

labour markets, trends in human resources etc are not easily

available. This leads to problems while planningfor human

resources in the organisation.

Uncertainties:

Uncertainties are quite common in human resource practices

in India due to absenteeism, seasonal unemployment, labour

turnover etc.

Time and expense:


16/24


PLANNING

Resistance by Employers:

Many employers resist Human Resource Planningas they

think that it increases the cost of manpower for the

management. Further, employers feel that Human Resource

Planningis not necessary as candidates will be available as

and when required in the country due to the growing

unemployment situation.

Resistance by Employees: Employees resist Human Resource Planningas it increases the

workload on the employees and prepares programmes for securing

human resources mostly from outside


17/24

CHANGING FACTORS IN HRP

1. Employment :-

HRP is affected by the employment situation in the country

i.e. in countries where there is greater unemployment; theremay be more pressure on the company, from government to

appoint more people. Similarly some company may force

shortage of skilled labour and they may have to appoint people

from other countries.


18/24


Technical changes in the society :-

Technology changes at a very fast speed and new people

havingthe required knowledge are required for the company. Insome cases, company may retain existingemployees and teach

them the new technology and in some cases, the company

have to remove existingpeople and appoint new.


19/24


Organizational changes :-

Changes take place within the organization from time to time,

i.e. the company diversify into new products or close down

business in some areas etc. in such cases the HRP process i.e.

appointingor removingpeople will change accordingto

situation.


20/24


4. Demographic changes :-

Demographic changes refer to things referringto age,population, composition of work force etc. A number ofpeople retire every year. A new batch ofgraduates with

specialization turns out every year. This can change theappointment or the removal in the company.

5. Shortage of skill due to labour turnover :-

Industries havinghigh labour turnover rate, the HRP willchange constantly i.e. many new appointments will takeplace. This also affects the way HRP is implemented.


21/24


6. Multicultural workforce :-

Workers from different countries travel to other countries in

search of job. When a company plans its HRP it needs to takeinto account this factor also.

7. Pressure groups :-

Company has to keep in mind certain pleasure. Groups like

human rights activist, woman activist, media etc. as they arevery capable for creatingproblems for the company, whenissues concerningthese groups arise, appointment or

retrenchment becomes difficult.


22/24

MAKING HUMAN RESOURCE PLANNING

EFFECTIVE Adequate information system:

The main problem faced in Human Resource Planningisthe lack ofinformation. So an adequate Human resourcedatabase should be maintained/developed for better

coordinated and more accurate Human Resource Planning. Participation:

To be successful, Human Resource Planningrequiresactive participation and coordinated efforts on the part ofoperatingexecutives. Such participation will help to improve

understandingof the process and thereby, reduce resistancefrom the top management.


23/24


PLANNING

Adequate organization:

Human Resource Planningshould be properly organised; aseparate section or committee may be constituted within thehuman resource department to provide adequate focus and tocoordinate the planningefforts at various levels.

HRP should be balanced with corporate planning:

Human resource plans should be balanced with the corporateplans of the enterprise. The methods and techniques usedshould fit the objectives, strategies and environment of theparticular organisation.

Appropriate time horizon: The period of manpower plans should be appropriate

accordingto the needs and circumstances of the specificenterprise. The size and structure of the enterprise as well as thechangingaspirations of the people should be taken intoconsideration.


24/24

od and changes

Documents