HUMAN RESOURCE

Click to edit Master subtitle style

PLANNING
4/22/12

INTRODUCTION

The basic purpose of having a human resource plan is to have an accurate estimate of the number of employees required, with matching skill requirements to meet organizational objectives. It provides information about the manner in which existing personnel are employed, the kind of skills required for different categories of jobs and human resource requirements over a period of time in 4/22/12 relation to organizational objectives.

DEFINITION OF HRP

Definition 1: Need, Availability, Supply = Demand

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

Definition 2: Right numbers, Capability, Organization Objectives

HRP is a process, by which an organization ensures that it has the right number and kind of people at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives.

Definition 3: Translation of objectives into HR numbers

4/22/12 HRP is a process of translating organizational objectives and

MEANING/PURPOSE OF HRP

In simple words HRP is understood as the process of forecasting an organizations future demand for and supply of the right type of people in the right numbers. It is only after HRP is done, that the company can initiate and plan the recruitment and selection process. HRP is a sub-system in the total organizational planning. HRP facilitates the realization of the companys objectives by providing right type and right number of personnel. HRP is important because without a clear-cut manpower planning, estimation of an organizations human resource need is reduced to mere guesswork.
4/22/12

OBJECTIVES OF HRP

Forecast personnel requirements. Cope with changes. Use existing manpower productively. Promote employees in a systematic manner. Creating highly talented personnel. Protection of weaker sections. Foundation of personnel functions. Optimizing investment in HR. Resistance 4/22/12 to change.

IMPORTANCE OF HRP

Resource planning is a highly important and useful activity. If used properly, it offers a number of benefits : Reservoir of talent. Prepare people for future. Cut costs. Succession planning.

1. 2. 3. 4.

4/22/12

PROCESSS OF HRP PLANNING

JDCV
HR NEEDS FORECAST

ORGANIZATIONAL OBJECTIVES

HR SUPPLY FORECAST HR PROGRAMMING HR IMPLEMENTATIO N CONTROL & EVALUATION

SURPLUS 4/22/12

SHORTAGE

HRP PROCESS
1.

Analyzing organizational plans and deciding objectives Forecasting the manpower requirements (Demand forecasting) Preparing manpower inventory (Supply forecasting) Developing employment plans Developing human resource plans

2.

3.

4. 5.

4/22/12

1. Analyzing organizational plans and deciding objectives

The short term and long term plans of the firm should be analyzed before setting human resource objective. The firm objective stated in the economic terms would incorporate expected economic growth , diversification plans, market opportunities, and government policies. e.g. short term objective of a company may be to hire 25 employees in direct sales force and long term objective may be to start an operation in a new state or to produce a new product.
4/22/12

2. Forecasting manpower requirement (Demand Forecasting)

It is a process of estimating the future requirements of manpower, by function and by level of skills. It consist several factor both external as well as internal. External factors are competition( domestic as well as local), laws & regulation , economic climate, change in technology and social factors. Internal factors include budget constraint, production levels, new product & services, organizational structure & employee separation. two methods

a) judgmental method b) statistical projection

4/22/12

a) Judgmental Forecast

The forecast based on the judgment of the managers possessing thorough and extensive knowledge of human resource requirement . 2 types of Judgment forecast: 1 .Managerial estimates

Managers across all the levels who are well acquainted with the workload, efficiency and ability of employees, think about the future workload, future capabilities of employee and decide on number and type of human resources required. Delphi process solicits estimated personnel needs from the

2 .Delphi method
4/22/12

b) Statistical Projection

Following methods are based on statistical projection

RATIOTREND ANALYSIS STATISTICAL PROJECTION REGRESSI ON ANALYSIS 4/22/12

ECONOMI C MODEL

WORKLO AD ANALYSIS

Statistical Projection
A) RATIO-TREND ANALYSIS:

Ratio trend is carried out by studying past ratios and forecasting ratios for the future. e.g. the current ratios of number of workers and sales in an organization and forecasting future ratios.

B) REGRESSION ANLYSIS:

It is based on the relationship between a business factor and workforce size. However, this method is more statistically sophisticated. E.g. statistical software.

C ) ECONOMIC METHOD:

Under this model, the previous data is analyzed and different variables affecting manpower requirements are identified. Also, the degree of impact of each variable is estimated.

D) WORK LOAD ANALYSIS: The need for manpower is also determined on the basis of workload analysis, wherein the company tries to calculate the number of persons required for a 4/22/12 various

Determining the Relationship Between Hospital Size and Number of Nurses

4/22/12

4/22/12

The basic purpose of preparing manpower inventory is to find out the size and quality of personnel available within the organization to man various positions. Every organization have two major sources of supply of manpower:

3. Preparing manpower inventory (Supply Forecasting)

internal and external

4/22/12

a) Internal Labor Supply

A profile of employees in terms of age, sex, education, training, experience, job level, past performance and future potential should be kept ready for use whenever required.

4/22/12

METHODS TO USE FOR FORECAST INTERNAL LABOR SUPPLY

STAFFING TABLE : It shows the number of employees in each job. It tries to classify employees on the basis of age, sex ,position, category, experience, qualification ,skills etc. A study of table indicates whether current employees are properly utilized or not. SKILLS INVENTORY (HUMAN RESOURCE AUDIT): It is an assessment of the knowledge, skills, abilities, experience and career aspiration of each of the current employees. this record should be updated at least every 2 yr and should include changes such as new skills, additional qualification , 4/22/12 changed job duties etc.

METHODS TO USE FOR FORECAST INTERNAL LABOUR SUPPLY

REPLACEMENT CHART: It shows the profiles of job holders department wise and offers a snapshot of who will replace whom if there is a job opening. TURNOVER RATE: Turnover rate is the percentage of employees separated during one year and calculated as: Number of separation during the year 100 Average number of employees during the year
4/22/12

Employee Replacement Chart for Succession Planning

4/22/12

METHODS TO USE FOR FORECAST INTERNAL LABOR SUPPLY

CONDITION OF WORK AND ABSENTEESIEM: Changes in the condition of work such as normal weekly working hours, overtime policies, the length and timing of holidays, retirement policy, the policy of employing part timers and shift system need to be assessed. PRODUCTIVITY LEVEL : Any changes in level of productivity would result in corresponding change in the manpower requirement.
4/22/12

b) External Labor Supply

When the organization grows rapidly, diversifies into newer areas of operation, (merchant banking, capital market operation, mutual funds, etc. in the case of a bank) and it is not able to find the people internally to fill the vacancies , it has to look into outside sources. At times, the firm has no choice but to actually lay off part of its workforce.

4/22/12

4 . Developing employment plans

The existing number of personnel and their skills ( from human resource inventory) are compared with the forecasted manpower needs( demand forecasting ) to determine the quantitative gaps in the workforce.

4/22/12

5.Developing human resource plan

Gap analysis may result in surplus of number of employees forecasted or shortage of workers forecasted. The human resource requirement needs to be translated into a concrete HR plan, backed up by detailed policies, programs and strategies (for recruitment, selection, training, promotion, retirement, replacement etc.)

4/22/12

Employment Plans
1) Recruitment plan: will indicate the number and type of people required and when they are needed 2) Redeployment : will indicate the programs for transferring or retaining existing employees for new job 3 ) Redundancy plan : will indicates who is redundant, when and where; the plans for retraining, where this is possible; and plans for golden handshake ,retrenchment, layoff, etc. 4 ) Training plan : will indicate the number of trainees or apprentices required and the programs for recruiting them or retraining: new course to be developed or changes that will affect existing courses.
4/22/12

Employment Plans
5) Productivity plan: will indicate reason for employee turnover and show strategies to avoid wastage through compensation policies; changes in work requirement and improvement in working . 6) Retention plan: will indicate reasons for employees turnover and show strategies to avoid wastage through compensation policies; changes in work requirements and improvement in working condition
4/22/12

Employment Plans
7) Control points : The entire manpower plan is subjected to close monitoring from time to time. control points be set up to find out deficiencies, periodic updating of manpower inventory, in the light of changing circumstances, be undertaken to remove deficiencies and develop future plans. 8) Downsizing plans: When a comparison of requirements and availability indicates a worker surplus will result, restricted hiring, reduced hours, early retirements, or layoff may be required to correct the situation. Downsizing plans include identifying who is to be made redundant, steps to be taken to help redundant employees find new jobs, policy for declaring redundancies and informing parties affected including union.
4/22/12

Human Resource Plans

1) Restricted hiring: When a firm implements a restricted hiring policy, it reduces the workforce by not replacing employees who leave. 2) Reduced hours: Reaction to declining demand can also be made by reducing the total number of hours worked, instead of continuing a 40hours week, management may decide to cut each employees time to 30 hours.
4/22/12

Human Resource Plans

3) Early retirement: early retirement of some present employees is another means of reducing the supply of worker through voluntary retirement schemes offering benefits to employees for premature retirement 4)Pinkslip/Termination/Retrenchment/Golden handshake: at times, the firm has no choice but to actually lay off part of its workforce
4/22/12

Human Resource Plans

4) Outsourcing: sometimes skills required may not be available inside the firm and hiring permanent workforce with these skills may not work out to be cost effective. In such case ,firm can look for outsourcing the jobs to external agencies 5) Contracting and subcontracting: Company may hire employees on contractual basis for handling some jobs. Contractual plans involve number of people to be hiring, pay terms etc. firm may also enter into contract with external agency which in turn will provide contractual workers( subcontracting).

4/22/12

Managerial Succession Planning

It includes training programs and series of job assignments leading to top positions. Methods of managerial succession plans may vary. Most successful programs seem to include top managements involvement and commitment. High level review of succession plans, formal performance assessment and potential assessment and written development plans for individuals. A typical succession planning involves following activities.
4/22/12

Managerial Succession Planning

Analysis of demand for managers and professionals by company level, functions and skills. Audit of existing executives. Projection of future likely supply from internal and external sources. Individual career path planning based on objective needs of future estimates, and assessments of potential. Career counseling. Accelerated promotions, with development targeted against future needs of business. Performance related training and development, to prepare individual for future roles .

4/22/12

Factors Affecting HRP

The important factors affecting HRP are:

Type and strategy of organization. Organizational growth cycles and planning. Environmental uncertainties. Time horizons. Type and quality of information. Nature of jobs being filled. Outsourcing. 4/22/12

Reference:
Pansaniya, D. et al (2011). Human Resources: Human Resource Planning. Retrieved from, http://www.authorstream.com/Presentat ion/gupta.prachi20-838496-humanresource-planning/

4/22/12