Professional Documents
Culture Documents
In an organization everything & everyone is a part of a bigger system that are interrelated and interdependent
Objective
Statements of specific outcome that are to be achieved. Objectives are often set in financial terms. That means that the objective is expressed in terms of a financial outcome that is to be achieved. Those could include: Desired sales or profit levels Rates of growth Amount of cash generated Value of the business or dividends paid to shareholders
Some objectives are hard to measure, but are often important. For example, an objective to be: An innovative player in the market A leading in the quality of customer service
Corporate objectives
Corporate objectives are those that relate to the business as a whole. They are usually set by the top management of the business and they provide the focus for setting more detailed objectives for the main functional activities of the business. They can be illustrated as follows:
Peter Drucker suggested that corporate objectives should cover eight key areas:
Market standing - Market share, customer satisfaction, product range Innovation - New products, better processes, using technology Productivity - Optimum use of resources, focus on core activities Physical & financial resources - Factories, business locations, finance, supplies Profitability - Level of profit, rates of return on investment Management - Management structure; promotion & development Employees - Organizational structure; employee relations Public responsibility - Compliance with laws; social and ethical behavior
Specific The objective should state exactly what is to be achieved. Measurable An objective should be capable of measurement so that it is possible to determine whether (or how far) it has been achieved Achievable The objective should be realistic given the circumstances in which it is set and the resources available to the business. Relevant Objectives should be relevant to the people responsible for achieving them Time Bound Objectives should be set with a time-frame in mind. These deadlines also need to be realistic
SMART objectives
Business Strategy
Business strategy is about how those corporate objectives are to be achieved. Strategy is the way in which a company orients itself towards the market in which it operates and towards the other companies in the marketplace against which it competes. It is a plan an organization formulates to gain a sustainable advantage over the competition.
Business Strategy is about making high-level decisions and forms the management game plan for Satisfying customers (meeting customer needs) Running the business (organizing resources in the most efficient and effective way) Beating the competition (strategies and tactics to gain competitive advantage) Achieving corporate objectives
Objectives of HRP
To recruit and retain the human resources of required quantity and quality. To foresee the employee turnover and make the arrangements for minimizing turnover and filling up of consequent vacancies. To meet the needs of the programme of expansion, diversification etc. To foresee the impact of technology on work, existing employees and future hr requirements. To improve the standards, skills, knowledge, etc. To estimate cost of human resources.
External Factors
Internal Factors
Government Policies Level of Economic Devlpmnt. Business Environment Information Technology Level of Technology Natural Factors International Factors
Strategies of co. HR Policies of co. Formal/Informal groups Job Analysis Time Horizons Type/Quality of information Trade unions
Corporate Strategy Growth (Mergers & Acquisitions) HR Strategy Improving the employee morale Managing and unifying the cultural diversity Counsel the employees regarding resistance to change and adoption to new systems & procedures Corporate Strategy Growth (Horizontal Integration, conglomerate diversification) HR Strategy T&D of existing employees, employing new candidates for the diversified business..etc.
Corporate Strategy Growth (Joint Ventures) HR Strategy formulate the plan programme for management of cultural diversity Train the existing employees in the new technologies and systems of the partner company
Corporate Strategy Downsizing strategies HR Strategy retrenchment Outplacement assistance Cut in salaries, perks, long leave without pay Redeploy employees in sister organizations
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Net HR requirements for future 9 Forecast the future supply of HR in all sources if supply is inadequate
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Surplus of future available HR in the organization 6 5 Shortage of future available HR in the organization
Redeployment
Considerations
Product/service demand Technology Financial resources Absenteeism/turnover Organizational growth Management philosophy
Techniques Staffing tables Markov analysis Skills inventories Replacement charts Succession planning
External Considerations
Demographic changes Education of the workforce Labor mobility Government policies Unemployment rate
FORECASTING SUPPLY
(4) Replacement charts replacement chart is used to estimate vacancies in higher level jobs and identify how potential HR supply can fill these vacancies via internal movements from lower levels jobs. A comprehensive replacement chart will include information regarding possible replacements for vertical or horizontal movement. Generally, a replacement chart includes information about employees performance, readiness to fill the position, and education.
The techniques of planning should be those best suited to the data available and the degree of accuracy required. Plans should be prepared by skill levels rather than aggregates. The impact of external forces like technological changes, changes in labour market compositions , etc, needs to be considered HRIS should be used as a decision support system.