HUMAN RESOURCE MANAGEMENTMMS (SEM II)

Chapter 3-Part A

Human Resource Planning

Topics to be covered

• Meaning of HRP• Importance of HRP• Process of HRP• Job Analysis

Human Resource Planning

• HRP is the process of forecasting a firm’s future demand for, and supply of, the right type of people in the right number.

• HRP is essentially the process of getting the right number of qualified people into the right job at the right time so that an organization can meet its objectives.

• HRP is forward looking function. It tries to assess human resource requirements in advance keeping the production schedules, market fluctuations, demand forecast, etc. in the background.

Importance of HRP

• Reservoir of talent - People with requisite skills are readily available to carry out the assigned tasks.

• Need for Replacement of Personnel - Replacing old, retired or disabled personnel.

• Meet manpower shortages due to labour turnover.

• Meet needs of expansion / downsizing programmes - If the organization wants to expand its scale of operations, it can go ahead easily. Advance planning ensure continuous supply of people with requisite skills who can handle challenging jobs easily.

Importance of HRP…

• Cut cost - Planning facilitates the preparation of an appropriate HR budget for each department.

• Succession Planning - HRP prepares people for future challenges. The ‘stars’ can be picked up and kept ready for further promotions whenever they arise.

HRP Process - Determination of Quantity of Personnel

Organisational Objectives

HR Programming

HR Needs Forecast

HR Supply Forecast

HRP Implementation

Control & Evaluation

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

Shortage - Recruitment & Selection

Organisational Objectives & Policies

Downsizing / Expansion Acquisition / Merger / Sell-out Technology upgradation / Automation New Markets & New Products External Vs Internal hiring

HR Demand Forecast

Process of estimating future quantity and quality of manpower required for an organisation.

External factors - competition, laws & regulation,

economic climate, changes in technology and social factors

Internal factors - budget constraints, production levels, new products & services, organisational structure & employee separations

Forecasting Techniques

• Managerial Judgement - Managers discuss and arrive at a figure of inflows & outflows which would cater to future labour demand.

• Ratio-Trend Analysis - Studying past ratios, ie No. of Workers Vs Volume of Sales, forecasting future ratios and adjusting for future changes in the organisation.

• Work-Study Technique - Used when length of operations and amount of labour required can be calculated.

• Delphi Technique - From a group of experts the personnel needs are estimated.

HR Supply Forecast

• Process of estimating future quantity and quality of manpower available internally & externally to an organisation.

Supply Analysis• Existing Human Resources• Internal Sources of Supply• External Sources of Supply

Existing Human ResourcesCapability / Skills Inventory using HR Information System

General Information -Name: Present Address: Department:Sex: Designation:DOB: DOJ:Marital Salary: Status: Permanent Address: Grade:

Qualification -Degree/Diploma Institution Class Year of Pass

Experience/Skills -Job Title/ Organisation Brief Skill/Appointment Responsibilities Specialisation

Outstanding Achievement / Additional Information -Awards Performance Disciplinary ActionPromotions Merit Rating AbsenteeismAchievementsCareer Plans:

Internal Supply• Inflows & Outflows - The number of losses & gains

of staff is estimated.

• Turnover Rate - refers to rate of employees leaving.= ( No. of separations in a year / Avg no. of

employees during the year ) x 100

• Absenteeism - unauthorised absence from work.= ( total absentees in a year / Avg no. of employees x No. of working days) x 100

• Productivity Level = Output / Input. Change in productivity affects no. of persons per unit of

output.

External Supply• External recruitment, selection & placement -

Advertisements, Manpower Consultants, Campus Recruitment, Unsolicited Applications, Employee Referrals

HR Programming• Balancing Demand and Supply• Vacancies filled in by the right employee at the

right time

HR Plan Implementation

•Converting an HR plan into actions.

Recruitment, Selection & Placement

Training & Development

Retraining & Redeployment

Retention Plan

Downsizing Plan

Control & Evaluation

• Are budgets, Targets & Standards met ?

• Responsibilities for Implementation & Control

• Reports for Monitoring HR Plan

Job Analysis

• Job Analysis is a formal and detailed examination of jobs.

• It is a systematic investigation of the tasks, duties and responsibilities necessary to do a job.

• Such information helps in the preparation of job description and job specification.

• Job Analysis is important personnel activity because it identifies what people do in their jobs and what they require in order to do the job satisfactory.

Steps in Job Analysis

Collection of Organizational Structure Information

Selection of Representative Positions to be Analyzed

Collection of Job Analysis Data

Developing Job Description

Developing Job Specification

Information processing

METHODS OF COLLECTING JOB DATA

There are 6 widely used methods for JA:• Observation method• Individual interview method• Structured questionnaire method• Technical conference method/ Panel of Experts• Diary method

Collection of Data

Who Collects ? - On-the-job Employees, Supervisors,

Consultants / job analyst

What to Collect

- Physical & Mental activity involved

- Each task essential to achieve overall result

- Skill / Educational factor needed for the job

Job Analysis

Job DescriptionA proper definition & designof work. A statement

containing:

• Job Title• Location• Job Summary• Duties & Responsibilities• Materials, Tools &

Equipment used• Forms & reports handled• Supervision given / received• Working conditions• Hazards & Safety

precautions

Job SpecificationA statement of human

qualifications necessary to do the job containing:

• Education & Qualifications • Experience & Training• Knowledge & Skills• Communication skills• Physical requirements -

Height, Weight, Age• Personality requirements -• Appearance, Judgement, Initiative, Emotional stability