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7/31/2019 Human Resource Planning (HRP) - Groups
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Human Resource Planning (HRP)
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INTRODUCTION
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What is HRP
According to Decenzo and Robbins hrp is defined
as HRP is the 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 will help the organisation achieve its
overall objectives
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OBJECTIVES OF HRPEnsure adequate supply of manpower as and when
required
Ensure proper use of existing manpower in
organisation
Forecast future requirement of manpower withdifferent skill levels
Asses surplus or shortage of manpower for a
specified period of time
Anticipate the impact of technology on existing HRand job requirements
Control the human resource already deployed in the
organisation
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IMPORTANCE OF HRP
HRP provides required number and quality of
workers at all times.
Helps to determine gaps in existing manpower
in terms of quality and talent and how to fill
them.
Provision for replacement of personnel can be
made through HRP.
Helps to achieve the companies strategies.
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It helps to reduce wastage of manpower.
Helps us to develop employees to meet the
challenges posed by the environment (Such as
technological changes)
Helps to avoid surplus manpower as well as
manage surplus if it exists.
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Recent trends that have made HRP
more important
Employment change: Increased number of
educated unemployed, acute shortage for
people with specific skills.
Technological changes: HR has to adapt.
Organisational change: Size of firms
increasing. Business environment turbulent.
New strategies required to meet new
requirements.
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Demographic changes: Demographic profile in
terms of age, sex, education etc. Is changing.
Scarcity of skills as businesses become more
complex.
Increased hiring cost.
Increased mobility of workforce: Makingretention difficult.
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PROCESS OF HRP
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STEP 1: Fore cast personnel needs
The first step is to determine the number and
kind of workforce required.
For this there are broadly 2 types of methods:
Judgement methods
Statistical methods
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FORECASTING HUMAN NEEDS
JUDGEMENT METHODS
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The Nominal Group Technique
A small group of 4-5 people gathers around a table. Leaderidentifies judgment issue and gives participants procedural
instructions.
Participants write down all ideas that occur to them, keepingtheir lists private at this point. Creativity is encouraged duringthis phase.
Leader asks each participant to present ideas and writes themon a blackboard or flipchart, continuing until all ideas have beenrecorded.
Participants discuss each others ideas, clarifying, expanding,
and evaluating them as a group.
Participants rank ideas privately in their own personal order andpreference.
The idea that ranks highest among the participants is adopted
as the groups judgment.
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The Delphi TechniqueLeader identifies judgment issues and develops questionnaire.
Prospective participants are identified and asked to cooperate.
Leaders send questionnaire to willing participants, who recordtheir judgments and recommendations and return thequestionnaire.
Leaders compiles summaries and reproduces participantsresponses.
Leader sends the compiled list of judgment to all participants.
Participants comment on each others ideas and propose a final
judgment.
Leader looksfor consensus
Leader accepts consensus judgment as groups choice.
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Other judgement methods include:
Estimates
Rule of thumb
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FORECASTING HUMAN NEEDS
STATISTICAL METHODS
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NAME DEFINITION
Regression Analysis Past levels of various work load indicators, such as sales,production levels, and value added, are examined forstatistical relationships with staffing levels. Wheresufficiently strong relationships are found, a regression (ormultiple regression) model is derived. Forecasted levels ofthe retained indicator(s) are entered into the resultingmodel and used to calculate the associated level of humanresource requirements.
Productivity ratios Historical data are used to examine past levels of aproductivity index (P):
P = Work load / Number of People
Where constant, or systematic, relationships are found,human resource requirements can be computed by divingpredicted work loads by P.
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NAME DESCRIPTION
Personnel ratios Past personnel data are examined to determinehistorical relationships among the employees invarious jobs or job categories. Regression analysis orproductivity ratios are then used to project either totalor key-group human resource requirements, andpersonnel ratios are used to allocated totalrequirements to various job categories or to estimate
for non-key groups.
Time series Analysis Past staffing levels (instead of work load indicators)are used to project future human resourcerequirements. Past staffing levels are examined to
isolate and cyclical variation, long-tem terms, andrandom movement. Long-term trends are thenextrapolated or projected using a moving average,exponential smoothing, or regression technique.
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STEP 2: Forecast personnel supply
The next step is to determine the extent to
which the workforce required is available.
Here we forecast the supply of personnel
within the company as well as the supply of
candidates from outside the company.
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Techniques for forecasting internal
supply
1) The use ofmanual systems and replacement
charts/cards. Example of a replacement card:
Emp
Code
Name Date of
joining
Designation Training/
Certification
Comment
A160 Anne 12-10-1980 Marketing
manager
Holds certification
on Marketing from
cambridge
Ready for
promotion
B130 Abilash 5-3-2005 Salesperson Holds bachelor
degree inmarketing.
Ready for
futurepromotion
(Training
required in
negotiation,
internationa
l marketing)
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Use of computerised systems
Use of a variety of HR software packages, to
identify skills quickly of staff.
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Forecasting external supply
1) One can forecast external supply easily by studying
literature available both in print as well as online.
2) For instance by reviewing census data, Labour
statistics etc. Provided by the Govt.
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STEP3: Formulate HR Plan
We do not live in a static World and acompanies HR resources can transformdramatically.
The next step is to formulate a HR plananswering:
Are we making use of the available talent we havein the Organization, and have we an enough
provision for the future?
Are employees satisfied with our care of theirgrowth in terms of advancing their career?
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STEP 4: Enact HR Plan
A plan is useless unless it is placed into action.
The final step is to enact the HR plan.
Once in action, the HR Plans become
Corporate plans. Having been made and
concurred with top management, the plans
become a part of the companys long-range
plan.
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LEVELS OF HRP