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The Process of Human Resource Planning Organizations need to do human resource planning so they can meet business objectives and gain a competitive advantage over competitors.
Human resource planning compares the present state of the organization with its goals for the future. Then identifies what changes it must make in its human resources to meet those goals.
HR Planning Process
HR Planning Model
FORECASTING DEMAND CONSIDERATION Product/Services Technology Economics TECHNIQUES Trend analysis Managerial estimate Delphi Method BALANCE SUPPLY AND DEMAND RECRUITMENT Full Time Part Time Recalls REDUCTIONS Terminations Layoffs FORECAST SUPPLY INTERNAL Staffing tables Skills inventories Succession Planning EXTERNAL Demographic changes Labor Mobility
Recruitment Plan. Redeployment Plan Redundancy Plan. Training Plan. Productivity Plan. Retention Plan. Check/review points.
Responsibility of HRP
Assist and counsel operating managers to plan and set objectives. Collect and summarise manpower data keeping long run objectives and broad organizational interests in mind. Monitor and measure performance against the plan and keep top management informed about it. Provide proper research base for effective manpower and organisational planning.
Barriers to HRP
Time Consuming Financial forecasting takes precedence over HRP Uncertainties Non-involvement of operating managers Inadequate Information system Trade unions Employers
The human resources information system is a systematic procedure for collecting, storing, maintaining retrieving and validation data needed by an organization about its human resources. Pick your HRIS carefully based on the capabilities you need in your company.
Step 7:Training Step 8:Tailoring the system Step 9:Collecting the data
Step 10:Testing the system Step 11:Starting up Step 12:Running in parallel Step 13:Maintenance Step 14:Evaluation
HRIS is not just useful in human resources planning. Its uses extent to the whole gamut of HRM.
HR Forecasting attempts to determine the supply and demand for various types of human resources, and to predict areas within the organization where there will be labor shortages or surpluses.
the demand for labor 2. Determining labor supply 3. Determining labor surpluses and shortages
FORECASTING HR AVAILABILITY (SUPPLY ANALYSIS) (Predicting worker flows and availabilities) Succession or Replacement Charts Skills Inventories (use of HRIS) Labor Market Analysis Markov Analysis (Transition Matrix) Personnel Ratios
1) Expert Forecast
In this method managers estimate future human resource requirements, using their experiences and judgments' to good effect.
2) Ratio Analysis
A forecasting technique for determining future staff needs by using ratios between a causal factor and the number of employees needed.
Assumes that the relationship between the causal factor and staffing needs is constant.
for E.g.- Sales volume and no of employees needed.
3) The Graphical Method ( Scatter plot). A graphical method used to help identify the relationship between two variables.
SIZE OF HOSPITAL NUMBER OF NURSES
Forecasting HR Needs
Scatter plot
Determining the Relationship Between Hospital Size and Number of Nurses
516
4)Trend Analysis
Constructing and applying statistical models that predict labor demand for the next year, given relatively objective statistics from the previous year. 2001-02 Production of Units 5,000 :
2002-03
:
: :
2003-04
No. of Workers required : 8000 100/5000 = 160 If supervisors have a span of 20 workers, 8 supervisors are also needed in 200304. ( 1 suprervisors - 20 workers, 160 workers how many ??)
Y = 8 + 55 + 6 + 17
6)VACANCY ANALYSIS
Historic departures used to project turnover
LEVEL # EMPL TURN % Expected Vacancies Expected to Remain
TOP MGMT
MID MGMT LOW MGMT SKILLED W ASSY WKRS
100
200 600 600 2000
20 %
24 % 22 % 16% 12 %
20
48 132 96 240
80
152 468 504 1760
TOTALS 2964
3500
536
.1531
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7)Workload analysis: Based on the planned output, a firm tires to calculate the number of persons required for various jobs.
30,000 hours
1,000 hours (estimated on annual
30
If span of control in the unit is 10 per officer, then 3 officers are also required.
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8)Workforce Analysis: All relevant factors in planning manpower flows in a firm such as transfers, promotions, new recruitments, retirement, resignation, dismissal etc are taken into account while estimating HR needs
9)Delphi Technique
This technique calls for a facilitator to solicit and collate written, expert opinion on labor forecast. After answer are received, a summary of the information is developed and distributed to the expert, who are than requested to submit revised forecast. Expert never meet face-to-face, communicate through the facilitator. but rather
10)Computerized Forecast
The determination of future staff needs by projecting a firms sales, volume of production, and personnel required to maintain this required volume of output, using computers and software packages. Employers also used computerized system to personnel requirements .
Determining Labor Supply Predicting Worker Flows and Availabilities A) Internal Labor Supply)
a manpower inventory in terms of the size and quality of personnel available (their age, sex, education, training, experience, job performance, etc) is usually prepared by HR departments.
Several techniques are used while ascertaining the internal supply of manpower (a supply of employees to fill projected vacancies can come from within the firm or from new hires ).
A chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period.
It answers two questions:
1. 2.
Where did people in each job category go? Where did people now in each job category come from A skills inventory is an assessment of the knowledge, skills and abilities of the current employees. This record should be updated every 2 years and shou ld include the changes.
4) Skills inventory:
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SUCCESSION PLANNING
REPLACEMENT CHART
FOR EXECUTIVE POSITIONS
------------------------------------------------------------------------
POSITION
DANIEL BEALER
POSSIBLE CANDIDATES
CURRENT POSITION
SHARON GREEN Western Oregon Sales Manager Ready Now GEORGE WEI N. California Sales Manager Needs Training HARRY SHOW Idaho/Utah Sales Manager Needs Training TRAVIS WOOD Seattle Area Sales Manager Questionable
-------------------------------------------------------------------------
Management Replacement Chart Showing Development Needs of Future Divisional Vice President
529
5-14
Markov Analysis
2003-2004 Store Managers (n = 15) Asst. Store Managers (n = 36) Section Heads (n = 94) Departmental Heads (n = 288) Sales Executives (n = 1440) Forecasted Supply 16 41 92 Store Managers
80% 12 1 1% 4 1 1% 1 1 83% 30 66% 63 8% 8 15% 14 6% 2
Section Heads
Dept. Heds
Sales Executives
Exit
20% 3
10% 29
72% 207 6% 86
2% 6 74% 1066
301
1072
353
Skills inventory
Name : A.K. Sen Number : 429 Key words Word Accounting Book Keeping Auditing Description Tax Ledger Computer records Education Degree MBA B.Com Computer Literacy
Date printed : 1-4-2004 Department : Work experience From 1998 2000 2002 To 2000 2002 2003 T ax clerk Accountant Officer Special Qualifications Year 1998 1995 Course DBF Risk Management Position preference Accounting Auditing Date 1996 1999 Location choice Kolkata Delhi Bangalore M em be rsh ips 1. AIMA 2. ISTD 3. ICA Hobbies ABC Company XYZ Co. 41
Languages
French
External hires need to be contacted when suitable internal replacements are not available.
A growing number of firms are now using computerized human resource information systems to track the qualifications of hundreds or thousands of employees. HRIS can provide managers with a listing of candidates with required qualifications after scanning the data base.
Human Resource Information Systems (HRIS)
FOR EVERY 12 APPLICATIONS RECEIVED, ONLY one LOOKS PROMISING ENOUGH TO INVITE FOR AN INTERVIEW OF EVERY 5 PERSONS INTERVIEWED, ONLY one IS ACTUALLY OFFERED A POSITION IN THE ORGANIZATION OF EVERY 3 JOB OFFERS MADE, ONLY 2 ACCEPT THE POSITION OF EVERY 10 NEW WORKERS WHO BEGIN THE TRAINING PROGRAM, ONLY 9 SUCCESSFULLY COMPLETE THE PROGRAM
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The existing no of personnel and their skills from human resource inventory are compared with the forecasted needs ( demand forecasting), to determine the qualitative and quantitative gaps in the workforce. A reconciliation of demand and supply forecasts will give us the no of people to be recruited or made redundant as the case may be.
Summary
HR plans must fit in with overall objectives of a firm. They must get consistent support from top management. Computerized human resource information systems must be used for applicant tracking, succession planning, building skills inventories etc. The whole exercise must be carried out in coordination with operating