HUMAN RESOURCE PLANNING

SESSION- 6,7 & 8

What Company Expects from HR?

Effective Human Resource Planning is a process of analyzing an organizations human resource needs under changing conditions & developing the activities necessary to satisfy those needs ROLE OF HRP PROFESSIONALS 1. STATEGIC ROLE: -Formulating HR strategies -Managing relationships with managers 2. ADMINISTRATIVE ROLE: -Managing the org. resources -Employees welfare activities 3. SPECIALIZED ROLE: -Collecting & Analyzing data -Designing & applying forecasting systems -Managing career development

Human Resource Planning

HRP involves assessing the current and future labour needs of an organisation to get the...

right number of workers with the right skills in the right place at the right time

to help it meet its aims and objectives

Integrating HRP and Strategic Planning

Strategic Analysis
Establish the context:
business goals company strengths/weaknesses external opportunities/threats source of competitive advantage

Strategy Formulation
Clarify performance expectations and future management methods:
values, guiding principles business mission objectives and priorities resource allocations

Strategy Implementation
Implement processes to achieve desired results:
business goals company strengths/weaknesses external opportunities/threats source of competitive advantage

Identify peoplerelated business issues

Define HR strategies, objectives, and action plans

Implement HR processes, policies and practices

Human Resource Planning

OBJECTIVE: o Forecast personnel requirement o Cope with change o Using existing manpower productively o Promote employees in a systematic manner IMPORTANCE: Helps both organisations and employees to prepare for the future in implementing programmes to avoid anticipated problems In anticipating the problems of potential surpluses or deficits of people In attracting and retaining the number of people required with the appropriate skills, expertise and competencies In developing a well trained and flexible workforce, thus contributing to the organizations ability to adapt to an uncertain and changing environment In reducing dependence on external recruitment when key skills are in short supply by formulating retention, as well as employee development strategies
Human Resource Planning

1. Planning for Future Needs by deciding how many people with what skill the organization will need 2. Planning for Future Balance by comparing the number of needed employees to the number of present employees who can be expected to stay with the organization, which leads to 3. Planning for recruiting or laying off employees 4. Planning for the development of the employees to be sure the organization personnel has a steady supply of experienced and capable

Human Resource Planning

Human Resource Planning Process

External Environment Internal Environment
Strategic Planning Human Resource Planning
Forecasting Human Resource Requirements

Comparing Requirements and Availability Surplus of Workers

Forecasting Human Resource Availability Shortage of Workers

Demand = Supply

No Action

Restricted Hiring, Reduced Hours, Early Retirement, Layoff, Downsizing

Recruitment
Selection

Source: Human Resource Management by K. Aswathappa

Environmental scanning Organizational objectives and policies HR demand forecast

HR supply forecast
HR programming HR implementation Control and evaluation of programme
Human Resource Planning

Refers to the systematic monitoring of the external forces influencing the organization. Economic factors Technological changes Demographic changes Political & legislative issues Social concerns

Human Resource Planning

Refers to the systematic analysis of the organizational objectives and policies. Filling up vacancies Training and development objectives Union constraints Job enrichment Downsizing Automation Adaptive and flexible workforce

Human Resource Planning

The process of estimating the future quantity and quality of people required. Bases are annual budget and long term corporate plan. Forecasting techniques:
Expert forecasts Delphi technique Nominal group technique Trend analysis Regression analysis

Human Resource Planning

Expert Forecasts Using experts to arrive at a numerical estimate of future labour demand Steps: Stating assumptions, Considering potential organizational & environmental changes, and deriving a rationale to support numerical estimate. Delphi Technique Used for deriving detailed assumptions on long-run HR demand Experts do not meet face to face Steps:
Define and refine the issue Identify the experts, terms and time horizon Orient the experts Issue the first round of questionnaire Issue the first round questionnaire summary and the second round of questionnaire Continue issuing questionnaires

Human Resource Planning

Nominal Group Technique Group does meet face to face & interact Steps:

Define and refine the issue and relevant time horizon

Identify the experts Issue the HR demand statement to the experts Apply expert knowledge, state assumptions and prepare an estimate Meet face to face Discuss the demand estimates and assumptions Vote secretly to determine the expert demand assessment

Human Resource Planning

Trend Analysis Examining the relationship over time between an operational business index and the demand for labour Most common Steps: Select the appropriate business/operational index Track the business index over time Track the workforce size over time Calculate the average ratio of the business index to the workforce size Calculate the forecasted demand for labour

Human Resource Planning

Trend Analysis

2009-2010 Production of units: 5000 No. of workers: 100 Ratio- 100:5000 2010-2011 Estimated production: 8000 1.No. of workers required:?????? 2.If supervisors have a span of 20workers, how many supervisors are needed?

Human Resource Planning

Regression Analysis Presupposes that a linear relationship exists between one or more independent variables, which are predicted to affect the dependant variable. Cost of capital, unemployment rate, sales volume to future personnel demand Simple regression prediction model: Y= A+BX Y= The dependent variable A= Constant (Intercept) B= The slope of the linear relationship between X&Y X= The independent/ causal variable

Human Resource Planning

Step-4 HR supply forecast

Measures the number of people likely to be available from within and outside an organization. It covers: existing human resources, internal source of supply and external source of supply Forecasting techniques: Staffing Tables Replacement Charts Skill Inventories Succession Planning Markov Analysis

Human Resource Planning

Step-4 HR supply forecast

Staffing Tables
Pictorial representations of all organizational jobs, along with the numbers of employees currently occupying those jobs and future (monthly or yearly) employment requirements It classifies employees on the basis of age, sex, position, category, experience, qualification, skills etc.

Human Resource Planning

Step-4 HR supply forecast

Replacement Charts
Shows the profile of job holders department wise and offers a snapshot who will replace whom if there is a job opening. Provides more detailed information on each job, specifically the name of the current job incumbent and a short list of the top internal candidates who might replace the incumbent. The code contains two elements: The employees level of performance in the current job The employees readiness for movement or promotion

Human Resource Planning

An Executive Replacement Chart

Step-4 HR supply forecast

Skills and management Inventories

A skills inventory contains information for each individual on the following areas: Personal information Education, training & skill competencies Work history Performance appraisal history Career information Hobbies and interests

A management inventories is an individualized personnel record for managerial, professional or technical proficiencies. It includes: A history of mgmt or professional job held A record of mgmt or professional training courses Key accountabilities for the current job Assessment centre data Professional membership etc.
Human Resource Planning

Existing Human Resources

Capability / Skills Inventory using HR Information System
General Information Name: Present Address: Sex: DOB: Marital Status: Permanent Address: Qualification Degree/Diploma Department: Designation: DOJ: Salary: Grade:

Institution

Class

Year of Pass

Experience/Skills Job Title/ Organisation Brief Skill/ Appointment Responsibilities Specialisation Outstanding Achievement / Additional Information Awards Performance Disciplinary Action Promotions Merit Rating Absenteeism Achievements Career Plans:

Step-4 HR supply forecast

Succession Planning
The process of identifying, developing, and tracking key individuals for executive positions. Companies that are well known for their succession planning and executive talent development practices include: GE, Honeywell, IBM, Marriott, Microsoft, Pepsi, Procter & Gamble, Infosys

= Resources
Human Resource Planning

SUCCESSION & DEVELOPMENT PLANNING PROCESS

Identification of key Positions

Evaluation of Potential
Replacement Inventory Competency Mapping

Individual Development Plan

Human Resource Planning

Step-4 HR supply forecast

Markov Analysis Method for tracking the pattern of employee movements through various jobs It considers all the 5 possible movement options of an

employee. (??????????)
Assumption is employee movement is relatively stable over time Normally forecasted one year into future
Human Resource Planning

Hypothetical Markov Analysis for a Retail Company

Step-5 HR Programming
Comparing the existing no. of personnel and their

skills with the forecasted manpower needs

Objective is to fill the gap by right employees at the right time

Human Resource Planning

Step-6 HR Plan Implementation

Converting HR plan into action
Recruitment plan Redeployment plan Redundancy plan T&D plan Retention plan

Control points

Human Resource Planning

o Importance is questioned

o Conflict may arise between short term and long term plans
o Conflict may arise between qualitative and quantitative approaches o Difficult to get the line managers involved in the process

o Support and accuracy

Human Resource Planning