HUMAN RESOURCE PLANNING

upsetsubduedManagement

Nov 9, 2013 (3 years and 8 months ago)

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PRESENTATION ON

HUMAN RESOURCE PLANNING

GROUP I


BETTY MATHEW


SHRADHA GARG


VISHAL VATS


PREMLATA TUTI


DAKSH AGRAWAL


ASHUTOSH SHARMA


NEHA MARWAH


MANSI SHARMA


RAVI ROSHAN DUNGDUNG


JUDE SINGH


PREETI ABHILASHA MINZ


ANKITA KEVIN NATAL


PARIMAL PARAG

Human Resource Planning 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 the
process by which management determines how
the organization should move from its current manpower
position to its desired manpower position.

ACTIVITIES REQUIRED FOR HRP

Manpower planning consists of a series of
activities:




Forecasting future manpower requirements



Preparing an inventory of present manpower



Anticipating problems of manpower



Meeting manpower requirements


FACTORS AFFECTING HRP

HRP

Organizational
growth cycles
and planning.

Environmental
uncertainties

Outsourcing

Type and
strategy of
organization

Labor
market

Time horizons


Prevent Overstaffing and Understaffing


Ensure the organization has the right employees with the right
skills in the right place at the right times.


Ensure the organization is responsive to changes in its
environment.


Provide direction and coherence to all HR activities and
systems.


Unite the perspectives of line and staff managers

MACRO HRP




MICRO HRP


To forecast economic and business
environment


To estimate future demand of
numbers and types of skills by
various industries


To ensure more effective
utilization of HR


To make labor supply projections
for the future


To ensure effective labor supply to
different industries through
activities such as interacting with
educational institutions.


To prevent overstaffing and
understaffing


To ensure employee availability


To ensure that the firm is
responsive to the environment


To provide direction to al HR
activities


To build line and staff
partnerships


It Assists Human Resource Managers to
Strategies Development Plans.



Its Importance.










It captures different talent
pools.



It captures career plans and
grooms right number of
individuals.


Significance
of HRP

Growth of
services
economy

Technological
Advancement

Knowledge
economy
and
knowledge
workers

Increase in
Productivity

Labour

Market
changes

Government
Legislations
and
Regulations

Competitive
Business
Environment


Pressure to increase revenue and cut down costs.


Firms starting to become lean.


Poaching increasingly challenges employee retention.


Increased attrition and employee turnover in industries.


E.g. Increased contractual or part time hiring.


Jobs increasing in service sector than in manufacturing.


For e.g. shifting focus from production, chemical or civil
industry to IT, Telecom or banking.


Shift of focus from Employee skills to employee competency
and talent.


Occupational shift from manufacturing sector to knowledge
sector.


Technologies are rapidly changing and so are their production
processes and other supporting functions.


Result is changing job specifications and descriptions.


Increased need to recruit suitable human resource at the right
time.




Several industrial sectors including manufacturing , are
becoming knowledge and skill intensive, with new
innovation resulting in quality improvements and cost
reductions.



The numbers of jobs in manual and skilled categories are
going down in the knowledge economy.




Competition has contributed to rising productivity. Labour
productivity in Indian industries has increased steadily since
the mid

nineties and number of workers has been declining
steadily.



The

transformation

of

the

labour

market

in

recent

years

is

another

factor

that

has

implications

for

HRP
.



A

labour

market

is

a

geographical

region

where

the

supply

and

demand

of

labour

interact
.



Government

policies

and

regulations

relating

to

employment

influence

HRP
.


Affirmative

action

requires

firms

to

hire

women,

members

of

minority

groups,

and

disabled

people
.

The

reservation

of

jobs

and

seats

in

educational

institutions

limits

both

supply

and

demand
.

Strategic Planning

Human Resource Planning

Comparing
Requirements
and Availability

Forecasting
Human Resource
Requirements

Forecasting
Human Resource
Availability

Demand = Supply

Surplus of
workers

Shortage

of workers

No Action

Restricted hiring,
Reduced hours,
Early retirement,
layoff,
downsizing

Recruitment

Selection

Internal Environment

External Environment


Estimating the future quantity & quality of people required.
The basis of forecast depends upon the sales plan & the annual
budget.


HR demand forecasting considers 2 factors:


Internal


external

o
Demand forecasting helps in :

a)
Quantifying the jobs necessary for producing a given number
of goods & providing necessary services.

b)
It helps to determine what staff mix is desirable in future.

c)
Assess appropriate staffing levels to avoid unnecessary cost.

d)
Prevent shortages of people where & when they are needed
most.

e)
Helps the company to monitor legal compliance with regard
to reservation of jobs.


Qualitative methods

a)
Estimation
-
people in position estimate the number of people the firm
will require in the next year.

b)
Expert opinion
-
panel of experts forecast HR requirements for
particular future business scenarios.


Delphi
-
experts go through several rounds of estimates. No face
-
face
meetings.


Group brain storming
-
face
-
to
-
face discussion based on multiple
assumptions about future business direction.


Nominal group technique
-
face
-
to
-
face discussion


Simple averaging
-
simple averaging of viewpoints

c)

Sales force estimates
-
used when new products are introduced by a
firm. Sales personnel estimates the number of employees needed based
on their estimate of demand of product.





Quantitative methods
.


Trend analysis and projection
-
based on past relationship between
a business factor related to employment and employment level itself

a)
Simple long run trend analysis
-
extrapolates past relationship
between volume of business activity and the employment levels into the
future.

b)
Regression analysis
-
regresses employment needs onto key variables.


Simulation models
-
uses probabilities of future events to estimate
future employment levels


Workload analysis
-
based on actual content of work


Markov analysis
-
probabilistic based on past relationship between
business factor related to employment and employment level itself.




Supply forecasting


measures the number of people likely to
be available from within & outside the organization.


Reasons for supply forecasting:


Helps to quantify number of people & positions expected to be
available in future to help the organization realize its plans


Helps to clarify staff mixes that will exist in the future.


Prevents shortage of people where & when they are most needed.


Assess existing staffing levels in different parts of the organization.


Monitors expected future compliance with legal requirements of
job reservations.


Supply forecasting can be done through :


Existing human resources


Internal sources


External sources


Present employees
-

Analysis is facilitated by HR Audits.
The audits of non managers are called
skill inventories
&
those of the management are called
management inventories.


With technological advancements HR inventories have
become computerized. The
H
uman
R
esource Information
S
ystem(HRIS
) is a computerized inventory.



Name :
A.K. Sen
Date printed :
1-4-2004
Number :
429
Department :
41
Key words Work experience
Word
Description
Activity
From To
Accounting Tax
Supervision 1998 2000 Tax
clerk ABC Company
and analysis
Book Keeping
Ledger Supervision 2000 2002
Accountant
XYZ Co.
Auditing
Computer
Analysis
2002 2003 Chief Accounts TT
Bank
records Officer
Education Special Qualifications
Membershi ps
Degree
Major Year
Course
Date 1.
AIMA
MBA Finance 1998
DBF 1996 2.
ISTD
B.Com Accounts
1995
Risk Management 1999 3. ICA
Computer
Languages
Position Location Hobbies
Literacy
preference
choice

Tally
French
Accounting
Kolkata
Chess

Banking Auditing
Delhi
Football

Software
Bangalore
Boating
Employees Signature __________ HR Department________
Date _______________________ Date ________________

Turnover rate
-

number of separations during the year/
average number of employees during the year*100


Condition of work & absenteeism
-



Number of persons


days lost
* 100


avg

no. of persons * no. of working days


Productivity level


Movement among jobs


Inflows & outflows
-

Determination of the number of losses &
gains is made.



The Firm
Sources of Inflows

Transfers

Promotions

New Recruits

Recalls

Promotions

Quits

Terminations

Retirements

Deaths

Layoffs
Employees In
Employees Out
Current
staffing
level
Projected
outflows
this year
Projected
inflows
this year
Firm’s internal
supply for this
time next year
– + =
Projected Outflows
Current Staffing
Level



External hires need to be contacted when suitable internal
replacements are not available. A growing number of firms
are now using computerized Human
R
esource
I
nformation
S
ystems to track the qualifications of hundreds or thousands
of employees.


Several agencies make projections of external labor market
conditions & estimates of the supply of labor to be available
in different skill categories.


The Institute of Applied Manpower Research(IAMR)
publishes the Manpower Profile
-

India Yearbook.



Why

80
-

90
%

organizations

fail

to

achieve

their

organizational

long

term

objectives

?

Ans
.

Wrong

implementation

of

strategies
.


MANAGING SHORTAGES

MANAGING SURPLUS


Recruit new permanent
employees


Rehire retirees part time


Work current staff overtime


Subcontract work out


Hire temporary employees


Redesign Job processes so that
fewer employees are needed.


Hiring Freezes


Do not replace those who
leave


Offer early retirement
incentives


Reduce work hours layoffs


Reduce outsourced work


Employee Training


Expand Operations


Business Strategy
is the determination of the long term goals and
objectives of an organization, and allocation of resources necessary
for carrying out these goals.


HR strategy
should be aligned to business strategy to bring about
competitive advantage for the firm. The attributes, motivation,
development, priorities and performance should directly support
the company’s strategic goals. It can be done by:


People recognized as critical to business


Strategic Human Capital Management such as innovative
approaches to every link in the HR Value Chain
-

Recruitment,
Development, Motivation, Performance Management and Reward.


Prepare business and its people to meet future demand for talent
and competition for best human resource.




Business Strategy

Focus

HR Strategy

HRP

Activities

Cost Leadership




Cost Control


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Job and Employee
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Internal Promotions



Emphasis on
Training



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Decentralization



Shorter HR

Planning
Horizon


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employees




External Staffing


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Classification by Porter(1985)

Business Strategy

HR

Strategy

HRP

Defender



Finds change
threatening




Favors strategies which
encourage continuity and
security


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Training Programs and
Promotion

Prospector


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Favors Strategies of
product and/or market

development


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Have high quality HR



Emphasize
redeployment and
flexibility of HR


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recruitment, selection
and performance based
compensation

Analyser


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‘Buy’ as well as ‘make’
key

human resources

Classification by Miles and Snow (1984)


Involves identifying key management positions that the organization
cannot afford to have vacant.


PURPOSE



Facilitates transition when an employee leaves.



Identifies development needs of high potential employees and assists
with their career planning





.


Identify key positions and possible successors for each of these positions .
For Example :
-

J. Smith


V.P Marketing

R.Jones


Sales Director

Ready now

C.Williams


Productions Manager

15 months

S. Anderson

Director Marketing
Research

1 year


1.
To

ensure

that

key

positions

remain

filled
.



2.
To

identify

critical

training

and

development

needs

of

both

individual

managers

and

the

organization

as

a

whole

.


Disadvantages Advantages


Do not tell





Tell




High performers

may
leave the organization ,
unsure of their future.


Allows flexibility as
business needs change


Unrealistic expectations
and implied

contracts


Retention

Strategy


It is a part of planning process which anticipate the need for
groups of employees in specific , usually lower level jobs( for
ex., number of customer service representatives needed) and
the general skills employees need to ensure sustained high
performance.



Forecasting the demand for employees

i.
Unit forecasting ( Bottom up planning)

ii.
Top down forecasting



Plan for an adequate supply of employees
to meet the current demand.





In unit forecasting ,each individual unit, department, or branch of
the organization estimates its future needs of the employees. For
example, each branch of a bank might prepare its own forecast
based on the goals and objectives each branch manager has for the
particular office. These estimates are then presented to subsequent
layers of the management, who combine and sum the totals and
present them to senior management for approval. This technique
has the potential for being the most responsive to the needs of the
marketplace because it places responsibility for estimating
employees needs at the “point of contact” in service provision or
product production.


This involves senior managers allocating a budgeted amount for
employees payroll expenditures and then dividing the pool at
subsequent levels down the hierarchy. Each manager receives
budget from her/his supervisor and then decides how to allocate
these funds down to the next group of managers, this technique is
similar to sales and profit plans in many organization whereby each
unit is assigned a budgeted amount and then required to make
decisions on developing those resources in the manner most
consistent with business objectives. Although this technique may be
efficient , as senior management allocates HR costs within a strict
organization wise budget, there is no guarantee that it will be
responsive to the needs of the market place, Allocations are based
solely on what organization can afford, without regard to input
concerning demand and market place.


Markov Analysis


It describes the probability of employees
staying with the job category, moving to another job, or
leaving the organization over a given period usually one year.
It uses a transition probability matrix that is established based
on historical trends of mobility.



For example, we will assume that there are three job
classifications in the restaurant: servers, hosts and
buspersons
.


One year from Now


Servers Hosts Buspersons Exits


Servers .80 .10 0 .10

Current year Hosts .10 .70 0 .20


Buspersons .15 .05 .40 .40


Analysis of Matrix


Retention levels


Servers 80%


Hosts 70%


Buspersons 40%


Forecasting levels


Incumbents Servers Hosts Buspersons Exits

60 Servers 48 6 6


10 Hosts 1 7

2


20 Buspersons 3 1 8 8


Totals 52 14 8
16
Transition probability matrix for a restaurant


OUTSOURCING


Serves as a source of HR for a firm.


Serves as a way for filling the gaps that exist in the HR plan,
or shortage in the workforce


Decision may be driven by business objectives

There are 4 stages of the outsourcing process

1.
Analysis and Evaluation

2.
Contracting and Negotiation

3.
Initiation and Transition

4.
Stabilization and maintenance of outsourced relationshi
p


Stage 1


Analysis and Evaluation


Retain HR talent


Do not outsource HRP


Consider alternatives to outsourcing



Stage 2


Contracting and Negotiation


Evaluate Vendor organization


Design internal organization



Stage 3


Transition


Employ a phased approach to transition


Build a transition team


Stage 4


Stabilization and Improvement


Build in continuous improvement and flexibility at the
vendor


THANK YOU