HUMAN RESOURCE MANAGEMENT MMS (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 firms 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 Needs Forecast
HR Programming

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 Resources

Capability / Skills Inventory using HR Information System
General Information Name: Present Address: Sex: DOB: Marital Status: Permanent Address: Qualification Degree/Diploma Department: Designation: DOJ: Salary: Grade:

Institution

Class

Year of Pass

Experience/Skills Job Title/ Organisation Brief Skill/ Appointment Responsibilities Specialisation Outstanding Achievement / Additional Information Awards Performance Disciplinary Action Promotions Merit Rating Absenteeism Achievements Career 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

Information processing

Developing Job Description

Developing Job Specification

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 Description A proper definition & design of 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 Specification A 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