hrp project[1]

HUMAN RESOURCES PLANNING IN BANKING

AN OVERVIEW OF BANKING INDUSTRY.

Evolution of Banking:

Banking in India originated in the last decades of the 18 th century. The first bank

were the general bank of India which started in 1786, and the bank of Hindustan,

both of which are now defunct. The oldest bank in existences in India is a state bank

of India, which originated in the bank of Calcutta in june1806, which almost

immediately became the bank of Bengal this was one of the three presidency banks,

the other two being the bank of Bombay and the bank of madras, all three of which

were establish under charters from the British East India company. From many years

the presidency banks acted as quasi-central banks, as did their successors. The tree

banks merged in 1921 to form the Imperial Bank of India, which upon India’s

independence, become a State Bank of India.

Indian merchants in Calcutta established the Union Bank in 1839,but it failed in

1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank,

established in 1865 and still functioning today, it is oldest joint stock bank in India,

(joint stock bank: A company that issue stock and required shareholders to be held

liable for the companies debt) It was not the first though. That honor belongs to the

bank of upper India, which was established in 1863, in which survived until

1983,when it failed with some of its assets and liabilities being transferred to the

Alliance Bank of Simla.

When the American Civil war stopped the supply of cotton to Lancashire from

the Confederate States, promoters opened banks to finance trading in Indian cotton

GURU NANAK COLLEGE OF ARTS,SCIENCES & COMMERCE


stock. With large exposure to speculative ventures, most of the banks opened in

India during that period failed. The depositors lost money and lost interest in

keeping deposit with Banks. Subsequently, banking in India remained during the

exclusive domain of Europeans next several decades until the beginning of the 20 th

century.

Foreign Banks to Started to arrive particular in Calcutta in the 1860s. The

Comptoire d’Escompte de Paris opened a branch in Calcutta in 1860, and another in

Bombay in 1862,branches in Madras and Pondicherry, then a French colony

followed. HSBC established itself in Bengal in 1869, Calcutta was a most active

trading port in India, mainly due to trade in British Empire, and so become a

banking sector.

The first entirely Indian joint stock Banks was the oudh commercial bank

established in 1881 in Faizabad. It failed in 1958. Next was the Punjab National

Bank, in Lahore in 1895 which was survived to present and is now one of the largest

bank in India.

The presidency banks dominated in India but there were also some exchange

banks and number of Indian banks. All this banks operated indifferent segments of

economy. The exchange banks, mostly owned by Europeans concentrated on

financing foreign trade Indian joint stock banks were generally under capitalized and

lacked and experienced in maturity to compete with presidency exchange banks. The

segmentation let Lord Curzon to observe,” In respect of banking it seems we are

behind the times we are likes some old fashion selling ship, divided by solid wooden

bulkheads in to separate an cumbersome compartments.”



HISTORY

Banking in the modern sense of the world can be tracked to medieval and early

Renaissance Italy, to the rich cities in the north like Florence, Venice and Genoa.

The Bardi and Peruzzi families dominated banking in 14th century Florence,

establishing branches in many other parts of Europe. Perhaps the most famous

Italian bank was the Medici Bank, set by Giovanni Medici in 1397.The earliest

known state deposit bank , Banco di san Giorgio (Bank of state), was founded in

1407 at Genoa Italy

Banks can be tracked back to times even before money temples were used to store

commodities. During the 3rd century AD, Banks in Persia and territories. Muslim

traders are known to have used the cheque or sakks system since the time of Harun

al-Rashid (9th century) of the Abbasid caliphate. In the 9th century, a Muslim

businessman could cash an early form of the cheque in China drawn on sources in

Bagdad. A tradition that was significantly strengthened in the 13 and 14 th century.

They contain some to be paid and then the order “ May so and so pay the bearer

such an amount”. The date and name of the issuer are also apparent.



DEFINITION OF BANKING

In general terms, the business activity of accepting and safeguarding

money owned by other individuals and entities, and then lending out this money in

order to earn profit.

“A bank is an institution, usually incorporated with power to issue its promissory

note intended to circulate as money (known as bank notes.)or to receive the money

of others on general deposit ,to form a Joint fund that shall be used by the

institution, for its own benefits, for one or more of the purpose of making temporary

loans and discounts, of dealings in notes foreign and domestic bills of exchanges,

coins, bullions, credits, and remission of money, or with both these powers and with

the privileges.



NATIONALIZATION OF BANKS

The RBI was nationalized on January 1, 1949 in terms of the RBI (Transfer to public

ownership) Act, 1948(RBI, 2005b).

By the 1960s, the Indian banking industry had become an important tool to facilitate

the development of Indian economy. AT the same time, it had emerged as a large

employer, and the debate had ensure about the possibility to Nationalized the

banking industry.

Indira Gandhi, the Prime Minister of India expressed the intension of GOI in the

annual conference of the of the all India Congress Meeting in a paper entitled “

stray thoughts on bank nationalization.” The paper was received with positive

enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an

audience and nationalized the 14th largest commercial banks with effect from the

midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, describe

the setup as the “masterstroke of political sagacity.”

A second dose of nationalization of 6 more of commercial banks followed in 1980.

The stated reason for nationalization was to give the government more control of

credit delivery.

With the second dose of Nationalization, the GOI controlled around 91% of the

banking business of India. Later on, in the year 1993, the government merged new

Bank of India with Punjab National Bank. It was the only merger between

nationalized banks and resulted in the reduction of the number of nationalized bank



from 20 to 19.After this, the 1990s,the nationalized banks grew at a pace of around

4%,closer to average growth of Indian economy.

BANKING

A bank is a financial intermediary that accepts the deposits and channel those

deposit into lending activities, either directly or through capital market. A bank

connect customer with capital deficits to customers capital surplus.

Banking is generally highly regulated industry, and government restrictions and

financial activities by bank have varied over time and location. The current setup

global banks capital standard are called Basel 2.In such countries such as Germany,

bank have historical owned major stakes in industrial corporation while in other

countries such as united bank state banks prohibited from owning non-financial

companies in Japan, banks are usually the nexus of a cross-shares holding entity

knows as the keiretsu. In island banks have very light regulation prior to the 2008

collapse.

The oldest banks still in existences in Monte dei Paschi di Siena, head quarter in

Siena Italy, which has been operating continuously since 1472.



ORIGIN OF THE WORD BANK

The word bank was borrowed in Middle English from Middle French banque,

from old- Italian banca, from old -high German banc, bank “bench, counter.”

Benches, used as desks or exchange counter during the Renaissance by Florentine

bankers, who used to make the transactions a top desks covered by green tablecloths.

The earliest evidences of money changing activities depicted on a silver Greek

drachm coin from ancient Hellenic colony Trabzon on the black sea, modern

Trabzon, c. 350-325 BC, presented in British museum in London, the coin shows a

bankers stable laden with coins, a pun on the name of the city. In fact even today

Modern Greek the word trapeze means both a table and a bank.



PRIVATE SECTOR BANK IN INDIA

Initially all the banks in India were private banks, which were founded in the Pre-

Independence era to cater to the banking needs of the people. In 1921, three major

banks that is bank of Bengal, Bank of Bombay, and Bank of Madras, merged to form

Imperial Bank of India. In 1935,the RBI was established and it took over the central

banking responsibilities from the imperial bank of India, transfering commercial

banking functions completely to IBI. In 1955, after the declaration first-five year

plan, imperial bank of india was subsidiary transfer to State Bank of India.

In 1994,the reserve bank of India issued a policy of Liberalization to license limited

number of private banks which came to known as generation tech-savvy banks.

Global trust banks was, thus, the first private banks after liberalization, it was letter

amalgamated with oriental bank of commerce. (OBC). Then housing development

finance corporation limited (HDFC) became the first (still existing) to receive an in

principal approval from the RBI to setup a bank into a private sector.

Private banks in India started by bank has a history due to the fact that in a past year

were originally working in private during those days they were supposed to handle

the more able and Indian with banking service and other banking needs that they

would require all this activities happened around 1929.



During that time there was the Bank of Bengal , Bank of Bombay and bank of

madras all this form the Imperial bank of India.

In the year of 1935 the reserve bank of India was build and it became the center of

other banks taking away the imperial responsibilities that include the transfer of

commercial banking completely

The private banks in India after the changes a lot of other banks accord in India on

19th July 1969. The government of India had given out and audience and

nationalized 14th big commercial Banks that includes Punjab National Banks,

Allahabad Bank, Canara Bank, Central Bank of India among others, other public

banks came upto take leading roles in banking routine.



PUBLIC SECTOR BANK IN INDIA

Public sector banks like State Bank of India, Bank of Baroda, Syndicate Bank,

Canara Bank. This are backed by government of India so depositor money is safe.

Public Sector Banks are some of the oldest bank are and have a reasonable charges

for most services.

Many of the branches of this banks are not network but they are slowly introducing

banking, ATM cards and other facilities, some times it requirements are not

correctly estimated and this results in problems for customers over experiences is

that they offer better services compared to all other types of banks.

Provident Fund (PPF) accounts, which offer tax free returns, can be opened at the

State Bank of India branches. If you do not operate the accounts in the branches for

a long time-a period of more than one year, the account becomes inactive and

additional verifications is required to make it active.

Most branches are opened for limited time in the morning, which is very

inconvenient for customers, specially salaried employees with 9 to 5 job, who

have to reach office in time there employers are unionized and often strike work.

United Bank of India is a one of the 14th major banks which is nationalized on July

19, 1969. It predecessor, in the Public Sector Bank of India, The United Bank of



India Limited, was formed in 1950 with the amalgamation of four banks Viz.

Comilla Banking Corporation Limited (1914), Bengal Central Bank Limited (1918)

Comilla Union Bank Limited (1922) and Hooghly Bank Limited(1932).

HUMAN RESOURCE PLANNING

DEFINATION OF HUMAN RESOURCE PLANNING

Wendell French defines Human Planning as “ the process of assessing the

organization human resources needs in the light organizational goals and changing

conditions and making plans to ensure that a competent, stable work forces is

employed”.

There are three resources that are critical for an organizational to be successful and

attain its goals are:

Financial resources (money)

Physical resources ( building and equipment)

Human resources (People)

While mangers pay great deal of attention in then planning of the first and second

resources, human resources are often neglected or taken for granted. This the terrible

mistake because no organizational can be successful in the long run without having



the right number of people and right kind of people doing the rights jobs at the right

time, hence HRP assumes vital importance.

CHARACTERISTICS OF HUMAN RESOURCE PLANNING

Human resources planning and your business plan work together to create a

terrifically successful business.

Human resource departments evolved over time, and since the mid-1990s what

was once called personnel administration has now become human resources.

Human capital is another term used to describe the value of your company &

employees. Employees drive your business success, and are therefore considered

resources or capital. Human resource planning takes on the challenge of

structuring a department and a presence within the company through strategic

planning, human resources development and workforce planning.

STRATEGIC PLANNING

The human resources leader is generally the person with whom executive

leadership has the most communication. The goal of human resources is to

bolster the company & reputation through hiring, training and promoting

employees who represent the company& highest level of service and product

delivery. Strategic planning from the human resources perspective also means

that the human resources leader plays an integral role in the development of

organization-wide goals and objectives. For many years, human resources was

considered merely an administrative section of the organization concerned only

with processing new hires, payroll, health insurance forms. Today, human

resources leaders with progressive companies are represented at the executive



level in vice president and assistant vice president roles to provide strategic

development for business success.

TRAINING DEVELOPMENT PLANNING:

Training, development and motivation are activities in which human resources

professionals engage to prepare the current workforce for the challenging

demands that future goals and objectives bring. Development of employee skills,

providing training to help employees gain new job skills and motivating

employees are part of the human resources development arm of the department.

Human resources development often underlies the organization & succession

planning, therefore, the training and development of future leaders is determined

as executive leadership assesses the skills, capabilities and aptitude demonstrated

by current supervisors, manager and leaders within the company. Succession

planning can ensure the company has a seamless transition in promoting the best

qualified individuals to roles that will lead the company into future success.

WORK FORCE PLANNING:

The recruitment and selection section of the human resources department is

involved in this aspect of human resources planning. Work force planning

involves projecting future employment trends, conducting workforce studies to

discern the level of employees that will need to be hired, and keeping abreast of

graduates from institutes and universities who will be entering the work force

ready for careers. Work force planning also includes looking inward at the

current work force to determine which employees have the skills, aptitude and

desire to move into other positions with the company. Recruiters and human

resources leaders look at occupational and employment projections as well



because this type of data is essential to planning the human capital value of the

company& future. The State of Texas Workforce Planning Guide contains

several important factors pertaining to workforce planning and development It

provides a clear rationale for linking expenditures for training and retraining,

development, career counseling, and recruiting efforts. It helps maintain or

improve a diversified workforce. It helps an agency prepare for restructuring,

reducing or expanding its workforce.

THE ROLE OF HR IN STRATEGIC PLANNING

It’s not just a place to go when troubles arise: Human Resources is a vital

department within companies, but too often they are misunderstood and

underutilized.

Thirty years ago, we had the “personnel department.” It took care of pretty

much everything relating to people in the workplace. Then about twenty years

ago we had split techo-terms became the rage (remember “domestic engineers?)

and we realized that we were dealing “human resources,” and so a new

department was born. But over the past fifteen-to-twenty years, HR has gone

through another split: Human Resource Management, and Human Resource

Development. Yes, the two have a bit of overlap, but agreement among experts in

the field is that the two branches of HR can help an organization accomplish its

strategic goals – if only top management would let them.



FIRST A BIT OF CLARIFICATION:

Human Resource Management is commonplace in most larger companies.

According to Richard Chang, author of The Passion Plan at Work, HRM focuses

mainly on HR Research and Information Systems, Union/Labor Relations,

Employee Assistance, and Employee Compensation/Benefits.

Human Resource Development, according to Chang, includes Career

Development (helping individuals align their career planning), Organizational

Development (helping groups initiate and manage change), and Training and

Development (designing / developing, and delivering training to ensure people

are equipped to do their jobs).

Where the two tend to overlap are Selection and Staffing, Organizational/Job

Design, Human Resource Planning, and Performance Management System.

What’s important to note about HR overall is that too often it is omitted from

participation in key strategic decisions. This mistake can be quite detrimental to

effectively achieving strategic goals. Here are some reasons to include HR in the

planning process (as well as in meetings of top management):

1. Selection and Staffing:

When goals are set, it’s people who work to fulfill those goals. Having the

right people in the right places is vital, and if new hiring is to occur, finding

the right people is equally vital. HR folks are usually on top of the employee

market, and decisions will be more effective if HR knows firsthand the clear

direction of the company. They can immediately speak to any potential

conflicts between what a company wants and what is truly realistic in HR

terms, thus helping ensure the plans are workable right from the start.



2. Organizational Development :

Strategic planning often encompasses change in workplace systems or

processes. Although individual departments are likely aware of the status of

their own departments, HR folks are often aware of group initiatives and

changes that has occurred company-wide. Accordingly, they will be able to

speak to OD issues with unique insights on how changes may impact systems

and processes already in place.

3. Training & Development:

Research shows that only 20% of the workforce has the skills that will be

required ten years from now. That means training and development are

guaranteed to be needed at some point of the strategic growth process. Again,

HRD folks will be able to speak instantly to any issues, and possibly provide

input that could help a company achieve its goals faster.

More reasons exits, but we’ll stop there. The main point is that HR is often

thought of as the place to go for employee conflict, employee assistance, or

compliance issues. But HR is much more than that, and top management

would do themselves and their organizations well if they included HRM and

HRD professionals in their strategic planning. There is nothing to lose by

doing so, and plenty to gain.



A GUIDE TO STRATEGIC HUMAN RESOURCE

PLANNING

INTRODUCTION

A comprehensive Human Resource Strategy plays a vital role in the achievement

of an organisation's overall strategic objectives and visibly illustrates that the

human resources function fully understands and supports the direction in which

the organisation is moving. A comprehensive HR Strategy will also support other

specific strategic objectives undertaken by the marketing, financial, operational

and technology departments.

In essence, an HR strategy should aim to capture "the people element" of what an

organisation is hoping to achieve in the medium to long term, ensuring that:-

it has the right people in place

it has the right mix of skills

employees display the right attitudes and behaviours, and

employees are developed in the right way

If, as is sometimes the case, organisation strategies and plans have been

developed without any human resource input, the justification for the HR strategy

may be more about teasing out the implicit people factors which are inherent in

the plans, rather than simply summarising their explicit "people" content.

An HR strategy will add value to the organisation if it:



articulates more clearly some of the common themes which lie behind the

achievement of other plans and strategies, which have not been fully

identified before; and

identifies fundamental underlying issues which must be addressed by any

organisation or business if its people are to be motivated, committed and

operate effectively.

The first of these areas will entail a careful consideration of existing or

developing plans and strategies to identify and draw attention to common themes

and implications, which have not been made explicit previously.

The second area should be about identifying which of these plans and strategies

are so fundamental that there must be clear plans to address them before the

organisation can achieve on any of its goals. These are likely to include:

workforce planning issues

succession planning

workforce skills plans

employment equity plans

black economic empowerment initiatives

motivation and fair treatment issues

pay levels designed to recruit, retain and motivate people

the co-ordination of approaches to pay and grading across the organisation

to create alignment and potential unequal pay claims

a grading and remuneration system which is seen as fair and giving proper

reward for contributions made



wider employment issues which impact on staff recruitment, retention,

motivation etc.

a consistent performance management framework which is designed to

meet the needs of all sectors of the organisation including its people

career development frameworks which look at development within the

organisation at equipping employees with "employability" so that they can

cope with increasingly frequent changes in employer and employment

patterns

policies and frameworks to ensure that people development issues are

addressed systematically : competence frameworks, self-managed learning

etc.

The HR strategy will need to show that careful planning of the people issues will

make it substantially easier for the organisation to achieve its wider strategic and

operational goals.

In addition, the HR strategy can add value is by ensuring that, in all its other

plans, the organisation takes account of and plans for changes in the wider

environment, which are likely to have a major impact on the organisation, such

as:

changes in the overall employment market - demographic or remuneration

levels

cultural changes which will impact on future employment patterns

changes in the employee relations climate

changes in the legal framework surrounding employment



HR and employment practice being developed in other organisations, such

as new flexible work practices.

Finding the right opportunity to present a case for developing an HR Strategy is

critical to ensuring that there will be support for the initiative, and that its initial

value will be recognised by the organisation.

Giving a strong practical slant to the proposed strategy may help gain acceptance

for the idea, such as focusing on good management practice. It is also important

to build "early or quick wins" into any new strategy.

Other opportunities may present the ideal moment to encourage the development

of an HR Strategy:-

A major new internal initiative could present the right opportunity to push

for an accompanying HR strategy, such as a restructuring exercise, a

corporate acquisition, joint venture or merger exercise.

A new externally generated initiative could similarly generate the right

climate for a new HR strategy - e.g. Black economic empowerment

initiatives.

In some instances, even negative news may provide the "right moment",

for example, recent industrial action or employee dissatisfaction expressed

through a climate survey.

MAKING THE HR STRATEGY INTEGRAL TO THE

ORGANIZATION:

The human resources practitioner should ensure that the HR Strategy is

integrated with broader organizational objectives. Above all, it should ensure that



the rest of the organization accepts the Strategy. To achieve this objective,

practitioners should:-

consult all stakeholders on the nature of the strategy;

cultivate and develop allies and supporters of the strategy through the

consultation process;

focus on the benefits which are being derived from the strategy through

talking to and persuading others, and by marketing the benefits of the

strategy with concrete examples of how it has helped;

check that there is real commitment to the strategy at all levels of the

organization;

give regular feedback on the implementation of the plan through employee

newsletters, exhibitions etc;

where possible, build into the strategy quantifiable outcomes which can be

easily monitored and evaluated, so that it is possible to show the effect;

make the strategy part of the induction process - especially for senior

managers.

A STRATEGIC HUMAN RESOURCE PLANNING MODEL:

There is no single approach to developing a Human Resources Strategy. The

specific approach will vary from one organisation to another. Even so, an

excellent approach towards an HR Strategic Management System is evident in

the model presented below. This approach identifies six specific steps in

developing an HR Strategy:-



1. Setting the strategic direction.

2. Designing the Human Resource Management System.

3. Planning the total workforce .

4. Generating the required human resources.

5. Investing in human resource development and performance.

6. Assessing and sustaining organizational competence and performance

Source:

A Strategic Human Resource Management System for the 21st Century. Naval

Personnel Task Force, September 2000



The six broad interconnected components of this system consist of three planning

steps and three execution steps.

The top three components represent the need for planning. Organizations must

determine their strategic direction and the outcomes they seek. This is usually

accomplished with some form of strategic planning. Classic strategic planning is

a formal, top-down, staff-driven process. When done well, it is workable at a

time when external change occurs at a more measured pace.

The Approach to Strategic Planning Changes Substantially:

First, the planning process is more agile; changes in plans are much more

frequent and are often driven by events rather than made on a

predetermined time schedule.

Second, the planning process is more proactive. Successful organizations

no longer simply respond to changes in their environment, they proactively

shape their environment to maximize their own effectiveness.

Third, the planning process is no longer exclusively top-down; input into

the process comes from many different organizational levels and segments.

This creates more employee ownership of the plan and capitalises on the

fact that often the most valuable business intelligence can come from

employees who are at the bottom of the organizational hierarchy.

Lastly, the strategic planning process less reactive and more driven by line

leadership.

Once strategic planning is under way, a process must be undertaken by the

organization to design and align its HRM policies and practices to provide for



organizational success. The remaining step in planning is to determine the quality

and quantity of human resources the organization needs for its total force.

The rest of the HR strategic system exists for and is guided by these plans,

policies, and practices. These execution components contain mechanisms that

generate the correct skill sets, invest in staff development and performance, and

productively employ them in the organisation. The last component provides a

means to assess and sustain the competence and performance of the organization

and the people in it with regard to outcomes that the organization seeks.

ANALYSIS

Using the process model discussed earlier, the specific components of the HR

Strategic Plan are discussed in greater detail below.

4.1 SETTING THE STRATEGIC DIRECTION

Many organisations cite their people as their primary source of competitive

advantage. Successful companies continuously identify and adopt innovative

human resource management policies and practices to sustain that advantage.



More importantly, they structure work and design training, performance

management, pay, and reward policies to help members of the organization

succeed in achieving desired organizational outcomes. In other words, they

integrate and align HRM policies and practices to reinforce employee

behaviors that can best realize the leaders' strategic intent. In the most

successful companies, the set of policies and practices that collectively make

up a company's HRM system is the critical management tool for

communicating and reinforcing the leaders' strategic intent.

RECOMMENDED ACTIONS:-

Conduct an external environmental scan and evaluate its impact on the

organization

Identify the organization's vision, mission and guiding principles

Identify the mission's outcomes and strategic goals

Consult all relevant stakeholders

Evaluate the impact of legislation on the organization



4.2 DESIGNING THE HUMAN RESOURCE MANAGEMENT

SYSTEM

This stage focuses on the selection, design and alignment of HRM plans, policies

and practices. Various options may be open to the organisation such as drawing

on industry best practices.

Emerging HRM policies and practices range from outsourcing certain non-core

functions, adopting flexible work practices (Telework, work from home) and the

increased use of information technology. Not every industry trend may be

appropriate for a specific organization. In addition, it is essential that a cost-

benefit analysis of implementing new HRM policies and practices be undertaken.

For example, the costs (monetary and in allocation of resources) of implementing

a new job grading system may outweigh the benefit of such an undertaking.

There may be more cost-effective alternatives available to the organization at this

point in time.

Particular HRM policies and practices may be necessary to support strategic

organizational objectives, such as improving the retention of women in the



organization or promoting diversity, especially the representation of designated

groups amongst senior management.

A good approach in selecting the appropriate HRM policies, procedures and

practices is to identify the appropriate HRM practices which support the

organization's strategic intent as it relates to recruitment, training, career planning

and reward management


Conduct an employment systems review

Identify appropriate human resource plans, policies and practices needed

to support organisational objectives

Identify relevant human resource best practices



4.3 PLANNING THE TOTAL WORKFORCE

Determining future business requirements, especially those relating to manpower

requirements, represents one of the most challenging tasks facing human resource

practitioners.

The development of a workforce plan is a critical component of any human

resource strategy and one of the expected outcomes of human resource

practitioners activities. Despite this, manpower or workforce planning, as well as

succession planning, has only recently enjoyed a resurgence in popularity. To

some extent this has been prompted by the need to develop employment equity

and workplace skills plans and set numerical employment equity targets. The

failure of many organizations to develop and implement workforce planning is

rather indicative of the lack of strategic planning itself.

Workforce planning is a systematic process of identifying the workforce

competencies required to meet the company's strategic goals and for developing

the strategies to meet these requirements. It is a methodical process that provides

managers with a framework for making human resource decisions based on the

organization’s mission, strategic plan, budgetary resources, and a set of desired



workforce competencies. Workforce planning is a systematic process that is

integrated, identifies the human capital required to meet organizational goals,

which consists of determining the number and skills of the workers required and

ongoing. It where and when they will be needed. Finally workforce planning

entails developing the strategies to meet these requirements, which involves

identifying actions that must be taken to attract (and retain) the number and types

of workers the organization needs.

A workforce plan can be as simple or as complex as the organisational requires.

Workforce planning can be conducted for a department, division or for the

organization as a whole. Whatever the level or approach being adopted, it must

nevertheless be integrated with broad-based management strategies.

In addition to workforce planning, ensure that organizational structure and jobs

ensure the efficient delivery of services and effective management of the

organization as a whole.


Determine the appropriate organisational structure to support the strategic

objectives

Structure jobs (competencies, tasks and activities) around key activities

Develop a workforce plan designed to support the organisations strategic

objectives

Compile workforce profiles, identifying designated groups, an inventory of

current workforce competencies, competencies required in the future and

identified gaps in competencies



4.4 Generating the required human resources

This process focuses on recruiting, hiring, classifying, training and assigning

employees based on the strategic imperatives of the organisation's workforce

plan.

A comprehensive workplace skills plan will identify appropriate training

priorities based on the organisations workforce needs now and in the future. New

recruitment practices may need to be adopted to increase the representation of

designated groups, or securing essential skills in the organisation. A

comprehensive "learnership strategy" may assist in developing future workforce

needs, identified either in terms of the organisations workforce plan or required

in terms of industry black economic empowerment charters.




Evaluate recruitment and selection practices in light of the organisation’s

strategic objectives

Develop and implement a comprehensive workplace skills plan (with a

thorough training needs analysis)

Implement a learnership strategy

Adopt or clarify occupational levels and category classifications



4.5 INVESTING IN HUMAN RESOURCE DEVELOPMENT

AND PERFORMANCE

Traditional approaches to career planning, performance appraisals, reward

management and employee development must be re-appraised in light of the

vision, characteristics and mission outcomes as reflected in the HRM plans,

policies, and practices.

Development responses will aim to increase business skills, the application of

business skills (sometimes called competencies) and the behavioural elements -

all of which contribute to an organisation's effective performance. In many ways,

the Skills Development legislation have required organisations to re-engineer

their developmental methods and practices. New concepts such as lifelong

learning and recognising prior learning should form an integral component of the

process of investing in employees.



Clearly, where a workforce planning exercise reveals that there is little projected

growth in the workforce or that promotional or career development

opportunities are limited, strategies aimed at employee retention will be very

different from organisations which are experiencing considerable growth and

expansion.

Investment initiatives for the individual, team and organisation are all geared to

achieve high levels of organisational performance. It is important that at an

individual level, particularly for senior staff, that they feel their development needs

are agreed and that they are provided with the skills to do their jobs. At a team level,

it defines the individuals' ability to work flexibly with others and align individual

and team skills and activities to business goals - all of which ensures that the

organisation is equipped to achieve its goals.

Reward strategies aim to align the performance of the organisation with the

way it rewards its people, providing the necessary incentives and motivation

to staff. Its components can be a combination of base pay, bonuses, profit

sharing, share options, and a range of appropriate benefits, usually based on

market or competitor norms and the organisation's ability to pay.


Identify appropriate policies, procedures and practices in respect of

Career pathing

Performance appraisals

Employee development and learning



Reward Management (compensation and benefits)

Promotions and job assignments

Separation

4.6 ASSESSING AND SUSTAINING ORGANISATIONAL

COMPETENCE AND PERFORMANCE

Finally, few organizations effectively measure how well their different inputs

affect performance. In particular, no measures may be in place for quantifying the

contribution people make to organizational outcomes or, more important, for

estimating how changes in policies and practices, systems, or processes will

affect that contribution. Implementing clear quantifiable measures, identifying

milestones in the achievement of specific organisational goals, and using

concepts such as a "balanced scorecard" will articulate the results of the HR



Strategic Plan in measurable terms. Regular evaluation of the plan will also assist

in fine-tuning the HR strategic plan itself.


Evaluate organisation culture and climate

Implement succession planning

Evaluate HR strategy using quantifiable measures, e.g. balanced scorecard

Revise and adapt HR strategy



PRINCIPLES OF HUMAN RESOURCE PLANNING

INTRODUCTION:

Principles of human resources planning require attention to fundamental concepts

such as the importance of HR, integration of human resources and company

objectives, efficiency and centralized decision-making. Personnel administration

evolved from a primarily process-based function of the 1980s to an all-

encompassing organizational component promoting the value of human capital.

Human resources planning based on HR guiding principles ensures a well-

structured component that synchronizes organizational philosophy and human

resources strategy.

Stressing HR Importance

One of the beginning principles of HR planning stresses the importance of human

resources. Engaging leadership that understands the impact of a functional human

resources department is the best way to adhere to this principle. The

Encyclopedia for Business, 2nd Edition, states: "Business consultants note that



modern human resource management is guided by several overriding principles.

Perhaps the paramount principle is a simple recognition that human resources are

the most important assets of an organization; a business cannot be successful

without effectively managing this resource." One way to realize the importance

of HR is to envision an organization with neither a productive workforce nor the

type of support that human resources planning and management provides.

Integrating Human Resources

Human resources serves the needs of the organization, top to bottom, including

every member of its workforce. Therefore, integration of human resources

functions with overall organizational goals is an HR principle that cannot be

overlooked. The importance of integrating HR and company objectives builds on

the previously mentioned principle: stressing the importance of human resources.

Human resources activities that are merely an extension of management are signs

of poor planning and failure to embrace forward-thinking ideas that improve the

company's profitability. An "Entrepreneur" magazine article appropriately titled,

"Integrating the Human Resource Function with the Business" reinforces this

proposition when it states: "It is not enough for the human resource function to be

responsive to management, "customer-oriented," or even aligned as partners with

management." That said, a holistic approach to the integration principle of human

resources planning ensures human resources will be fully committed to and a part

of organizational goals.

Processing HR

Human resources information technology (HRIT) contributes greatly to the

functionality and accuracy of human resources activities. Many organizations



purchase sophisticated human resources information systems (HRIS) that

minimize, or even eliminate, human error in processing employment data.

Smaller organizations sometimes rely on outsourcing their HRIS needs for

managing processes such as recruitment, payroll and compensation. Technology

supports an important principle of human resources planning -- human resources

data processing in the most efficient and accurate way possible.

Centralizing HR Functions

Tying together the principles of human resources planning requires centralizing

the HR functions. Systematic processes and organization adds a component to

HR that employees will appreciate. A one-stop shop for meeting the needs of the

employer and employees unifies human resources activities and adds value to

department functionality. Centralization involves the decision-making, staffing

and organizing of HR functions; however, it also addresses the need for physical

resources such as an applicant processing area, private conference and

interviewing space, and storage for employment and medical-related files.

ENTERPRISE RESOURCE PLANNING

INTRODUCTION:

Enterprise resource planning (ERP) integrates internal and external

management information across an entire organization, embracing

finance/accounting, manufacturing, sales and service, customer relationship

management, etc. ERP systems automate this activity with an integrated software

application. Its purpose is to facilitate the flow of information between all

business functions inside the boundaries of the organization and manage the

connections to outside stakeholders.


http://en.wikipedia.org/wiki/Software

http://en.wikipedia.org/wiki/Customer_relationship_management

http://en.wikipedia.org/wiki/Customer_relationship_management

http://en.wikipedia.org/wiki/Manufacturing

http://en.wikipedia.org/wiki/Accounting

http://en.wikipedia.org/wiki/Finance

http://en.wikipedia.org/wiki/Management_information


ERP systems can run on a variety of hardware and network configurations,

typically employing a database as a repository for information.

HISTORY

Origin of "ERP"

In 1990 Gartner Group first employed the acronym ERP as an extension of

material requirements planning (MRP), later manufacturing resource planning

and computer-integrated manufacturing. Without supplanting these terms, ERP

came to represent a larger whole, reflecting the evolution of application

integration beyond manufacturing. Not all ERP packages were developed from a

manufacturing core. Vendors variously began with accounting, maintenance and

human resources. By the mid–1990s ERP systems addressed all core functions of

an enterprise. Beyond corporations, governments and non–profit organizations

also began to employ ERP systems.

EXPANSION

ERP systems experienced rapid growth in the 1990s because the year 2000

problem and introduction of the Euro disrupted legacy systems. Many companies

took this opportunity to replace such systems with ERP. This rapid growth in

sales was followed by a slump in 1999 after these issues had been addressed.

ERP systems initially focused on automating back office functions that did not

directly affect customers and the general public. Front office functions such as


http://en.wikipedia.org/wiki/Front_office

http://en.wikipedia.org/wiki/Customer

http://en.wikipedia.org/wiki/Back_office

http://en.wikipedia.org/wiki/Euro

http://en.wikipedia.org/wiki/Year_2000_problem

http://en.wikipedia.org/wiki/Year_2000_problem

http://en.wikipedia.org/wiki/Computer-integrated_manufacturing

http://en.wikipedia.org/wiki/Manufacturing_resource_planning

http://en.wikipedia.org/wiki/Material_requirements_planning

http://en.wikipedia.org/wiki/Acronym_and_initialism

http://en.wikipedia.org/wiki/Gartner_Group

http://en.wikipedia.org/wiki/Database

http://en.wikipedia.org/wiki/Computer_network

http://en.wikipedia.org/wiki/Hardware


customer relationship management (CRM) dealt directly with customers, or e–

business systems such as e–commerce, e–government, e–telecom, and e–finance,

or supplier relationship management (SRM) became integrated later, when the

Internet simplified communicating with external parties.

"ERP II" was coined in the early 2000s. It describes web–based software that

allows both employees and partners (such as suppliers and customers) real–time

access to the systems. "Enterprise application suite" is an alternate name for such

system.

ERP SYSTEMS TYPICALLY INCLUDE THE FOLLOWING

CHARACTERISTICS:

An integrated system that operates in real time(or next to real time),

without relying on periodic updates.

A common database, which supports all applications.

A consistent look and feel throughout each module.

Installation of the system without elaborate application/data integration by

the Information Technology (IT) department.

CONNECTIVITY TO PLANT FLOOR INFORMATION

ERP systems connect to real–time data and transaction data in a variety of ways.

These systems are typically configured by systems integrators, who bring unique

knowledge on process, equipment, and vendor solutions.

Direct integration:


http://en.wikipedia.org/wiki/Systems_integrator

http://en.wikipedia.org/wiki/Supply_chain_management

http://en.wikipedia.org/wiki/Electronic_business

http://en.wikipedia.org/wiki/Electronic_business


ERP systems connectivity (communications to plant floor equipment) as part of

their product offering. This requires the vendors to offer specific support for the

plant floor equipment that their customers operate. ERP vendors must be expert

in their own products, and connectivity to other vendor products, including

competitors.

Database integration:

ERP systems connect to plant floor data sources through staging tables in a

database. Plant floor systems deposit the necessary information into the database.

The ERP system reads the information in the table. The benefit of staging is that

ERP vendors do not need to master the complexities of equipment integration.

Connectivity becomes the responsibility of the systems integrator.

Enterprise appliance transaction modules (eatm):

These devices communicate directly with plant floor equipment and with the

ERP system via methods supported by the ERP system. EATM can employ a

staging table, Web Services, or system–specific program interfaces (APIs). The

benefit of an EATM is that it offers an off–the–shelf solution.

Custom–integration solutions:

Many system integrators offer custom solutions. These systems tend to have the

highest level of initial integration cost, and can have a higher long term

maintenance and reliability costs. Long term costs can be minimized through

careful system testing and thorough documentation. Custom–integrated solutions

typically run on workstation or server class computers.


http://en.wikipedia.org/wiki/Api

http://en.wikipedia.org/wiki/Enterprise_appliance_transaction_module

http://en.wikipedia.org/wiki/Systems_integrator

http://en.wikipedia.org/wiki/Database


Standard protocols:

Communications drivers are available for plant floor equipment and separate

products have the ability to log data to staging tables. Standards exist within the

industry to support interoperability between software products, the most widely

known being OPC.

Process preparation:

Implementing ERP typically requires changing existing business processes. Poor

understanding of needed process changes prior to starting implementation is a

main reason for project failure. It is therefore crucial that organizations

thoroughly analyze business processes before implementation. This analysis can

identify opportunities for process modernization. It also enables an assessment of

the alignment of current processes with those provided by the ERP system.

Research indicates that the risk of business process mismatch is decreased by:

linking current processes to the organization's strategy;

analyzing the effectiveness of each process;

understanding existing automated solutions.

ERP implementation is considerably more difficult (and politically charged) in

decentralized organizations, because they often have different processes, business

rules, data semantics, authorization hierarchies and decision centers. This may


http://en.wikipedia.org/wiki/List_of_automation_protocols


require migrating some business units before others, delaying implementation to

work through the necessary changes for each unit, possibly reducing integration

(e.g. linking via Master data management) or customizing the system to meet

specific needs.

Configuration

Configuring an ERP system is largely a matter of balancing the way the customer

wants the system to work with the way it was designed to work. ERP systems

typically build many changeable parameters that modify system operation. For

example, an organization can select the type of inventory accounting—FIFO or

LIFO—to employ, whether to recognize revenue by geographical unit, product

line, or distribution channel and whether to pay for shipping costs when a

customer returns a purchase

Customization

When the system doesn't offer a particular feature, the customer can rewrite part

of the code, or interface to an existing system. Both options add time and cost to

the implementation process and can dilute system benefits. Customization

inhibits seamless communication between suppliers and customers who use the

same ERP system un-customized.

Key differences between customization and configuration include:


http://en.wikipedia.org/wiki/FIFO_and_LIFO_accounting

http://en.wikipedia.org/wiki/FIFO_and_LIFO_accounting

http://en.wikipedia.org/wiki/Master_data_management


Customization is always optional, whereas the software must always be

configured before use (e.g., setting up cost/profit center structures,

organisational trees, purchase approval rules, etc.)

The software was designed to handle various configurations, and behaves

predictably in any allowed configuration.

The effect of configuration changes on system behavior and performance is

predictable and is the responsibility of the ERP vendor. The effect of

customization is less predictable, is the customer's responsibility and

increases testing activities.

Configuration changes survive upgrades to new software versions. Some

customizations (e.g. code that uses pre–defined "hooks" that are called

before/after displaying data screens) survive upgrades, though they require

retesting. Other customizations (e.g. those involving changes to

fundamental data structures) are overwritten during upgrades and must be

re-implemented.

Customization can be expensive and complicated, and can delay implementation.

Nevertheless, customization offers the potential to obtain competitive advantage

vis-à-vis companies using only standard features.

Data migration

Data migration is the process of moving/copying and restructuring data from an

existing system to the ERP system. Migration is critical to implementation

success and requires significant planning. Unfortunately, since migration is one

of the final activities before the production phase, it often receives insufficient

attention. The following steps can structure migration planning:



Identify the data to be migrated

Determine migration timing

Generate the data templates

Freeze the toolset

Decide on migration-related setups

Define data archiving policies and procedures.

COMPARISON TO SPECIAL–PURPOSE

APPLICATIONS

ADVANTAGES

The fundamental advantage of ERP is that integrating the myriad processes by

which businesses operate saves time and expense. Decisions can be made more

quickly and with fewer errors. Data becomes visible across the organization.

Tasks that benefit from this integration include

the vendor Sales forecasting, which allows inventory optimization

Order tracking, from acceptance through fulfillment

Revenue tracking, from invoice through cash receipt

Matching purchase orders (what was ordered), inventory receipts (what

arrived), and costing (what the vendor invoiced)

ERP systems centralize business data, bringing the following benefits:


http://en.wikipedia.org/wiki/Cost

http://en.wikipedia.org/wiki/Purchase_order

http://en.wikipedia.org/wiki/Invoice

http://en.wikipedia.org/w/index.php?title=Data_archiving&action=edit&redlink=1


They eliminate the need to synchronize changes between multiple systems

—

consolidation of finance, marketing and sales, human resource, and

manufacturing applications

They enable standard product naming/coding.

They provide a comprehensive enterprise view (no "islands of

information"). They make real–time information available to management

anywhere, any time to make proper decisions.

They protect sensitive data by consolidating multiple security systems into

a single structure

DISADVANTAGES

Customization is problematic.

Re–engineering business processes to fit the ERP system may damage

competitiveness and/or divert focus from other critical activities

ERP can cost more than less integrated and/or less comprehensive

solutions.

High switching costs increase vendor negotiating power support,

maintenance and upgrade expenses.

Overcoming resistance to sharing sensitive information between

departments can divert management attention.

Integration of truly independent businesses can create unnecessary

dependencies.

Extensive training requirements take resources from daily operations.


http://en.wikipedia.org/wiki/Product_naming_convention


INTEGRATED LINE MANAGEMENT AND HR

PLANNING

1. INTRODUCTION

Today’s business challenges demand a focused human resources agenda. To

close the gap between the "strategic-HR haves" and "have-nots," practitioners

need a thoughtful, but practical approach to HR planning to connect people

priorities to business priorities, clarify line ownership for HR outcomes, and

reach a contract for the responsibility HR people will have across all divisions in

(large) organizations. The challenge in the planning process is to deliver depth of

thinking without complexity and to do it in a manner that involves line

management in the process.

2. How to build an HR agenda

Four elements or tasks need to be accomplished, roughly in sequence, to produce

a meaningful HR strategy and agenda:

1. THE COMPANY’S PEOPLE PHILOSOPHIES AND THEMES: Human

Resources work becomes a priority for line management when the chief

executive and his/her HR Director demonstrate a strong point of view about the

role people play in the business. The CEO and the HR Director should provide an

umbrella view from the top that defines the role of people in making the

enterprise competitive, over-arching themes related to vision, values and business

strategy.



2. BUSINESS-UNIT PEOPLE PLANS: A business unit people plan is the second

piece of the overall HR agenda. Each business unit develops their own plan.

These should be built into the strategic and operating plans of the business units

and major functions -- completed jointly by HR and line executives. It represents

people planning at the front lines-of-business. These line-of-business people

plans are to HR planning what ‘competitive strategy’ is to strategic planning.

3. COMPANY-WIDE HR PRIORITIES: The objective of this step of the agenda

building process is to define the degree of integration or commonality that is

needed among HR practices – across the various business units – to move the

business forward. Defining the right degree of commonality in HR policy,

practice and objectives among HR professionals in the business units is a

challenging but healthy dialogue, which needs to be done.

4. HR OPERATIONS PLANS: Many companies have created new roles for HR

referred to as a partnering approach for HR. Many transactional (repetitive

administrative) practices have been outsourced, and some are now being brought

back to the inside of leading companies in shared services centers.

Companies like Warner-Lambert, Motorola, Coca-Cola, and Whirlpool have

focused on the need to create new HR-organisation structures and to realign roles

in order to separate repetitive and customer service work (such as enquiries about

leave, accumulated pensions benefits and so on) from the consultative, and

business partnering work. These and other companies have reported significant

improvements in delivering strategic results when traditional generalist roles are

replaced with more consultative organisation-effectiveness roles, supported by

small centralised staffs of expert resources and transactional-service providers.



Partnering resources are increasingly assigned directly to line business units,

while service activities are aggressively consolidated.

At the heart of this agenda building and partnering process is step 2 – the ability

for HR to work directly with corporate and/or SBU top teams to facilitate the

development of company wide and business-unit people plans that mesh with and

support the strategic plan and priorities of the company and local SBU business

plans.

Unless line managers consider workforce issues during the planning process, HR

is likely to face impossible challenges and will be doomed to disappoint. HR

should not-in fact, cannot-shoulder sole responsibility for workforce-related

issues; business success today requires line managers to assume ultimate

ownership of workforce management decisions.

The remainder of this article is a ‘facilitator’s guide’ for an integrated line

management and HR planning session. Illustrations and graphics of the major

output for each step in the agenda building process are referred to on

http://www.workinfo.com/newsletter.

The process is summarized from a case study of the work done by corporate HR

at Mobil Marketing, part of Mobil Exxon and is reproduced here for teaching and

learning purposes only. The material in the case study may not be used for

commercial purposes.

3. Facilitator guidelines for an integrated line management and HR planning

process


http://www.workinfo.com/newsletter


Each SBU top team develops an integrated action plan to address the workforce

implications of company's business strategies, and SBU business plans. HR leads

the team through a 6-step methodical, two-day process of projecting workforce

implications of strategy. The process results in the formulation of metrics and

action plans. The goal of the planning exercise is to develop line ownership of the

workforce strategy, and provide HR with a clear, logical connection between the

activities of the HR function and the business objectives of the company (or the

line unit).

MANPOWER PLANNING

Manpower Planning which is also called as Human Resource Planning consists

of putting right number of people, right kind of people at the right place, right

time, doing the right things for which they are suited for the achievement of goals

of the organization. Human Resource Planning has got an important place in the

arena of industrialization. Human Resource Planning has to be a systems

approach and is carried out in a set procedure. The procedure is as follows:

1. Analysing the current manpower inventory

2. Making future manpower forecasts

3. Developing employment programmes

4. Design training programmes



STEPS IN MANPOWER PLANNING

1. Analysing the current manpower inventory:

Before a manager makes forecast of future manpower, the current

manpower status has to be analysed. For this the following things have to

be noted-

Type of organization

Number of departments

Number and quantity of such departments

Employees in these work units

Once these factors are registered by a manager, he goes for the future

forcasting.

Making future manpower forecasts:

Once the factors affecting the future manpower forecasts are known, planning

can be done for the future manpower requirements in several work units.

The Manpower forecasting techniques commonly employed by the

organizations are as follows:

i. Expert Forecasts:

This includes informal decisions, formal expert surveys and Delphi technique.

ii. Trend Analysis:



Manpower needs can be projected through extrapolation (projecting past

trends), indexation (using base year as basis), and statistical analysis (central

tendency measure).

iii. Work Load Analysis:

It is dependent upon the nature of work load in a department, in a branch or in

a division.

iv. Work Force Analysis:

Whenever production and time period has to be analysed, due allowances

have to be made for getting net manpower requirements.

v. Other methods:

Several Mathematical models, with the aid of computers are used to forecast

manpower needs, like budget and planning analysis, regression, new venture

analysis.

3. Developing employment programmes:

Once the current inventory is compared with future forecasts, the employment

programme can be framed and developed accordingly, which will include

recruitment, selection procedures and placement plans.

4. Design training programmes:

These will be based upon extent of diversification, expansion plans,

development programmes etc. Training programmes depend upon the extent



of improvement in technology and advancement to take place. It is also done

to improve upon the skills, capabilities, knowledge of the workers.

IMPORTANCE OF MANPOWER PLANNING

1. Key to managerial functions-

The four managerial functions, i.e., planning, organizing, directing and

controlling are based upon the manpower. Human resources help in the

implementation of all these managerial activities. Therefore, staffing

becomes a key to all managerial functions.

2. Efficient utilization-

Efficient management of personnels becomes an important function in the

industrialization world of today. Seting of large scale enterprises require

management of large scale manpower. It can be effectively done through

staffing function.

3. Motivation-



Staffing function not only includes putting right men on right job, but it

also comprises of motivational programmes, i.e., incentive plans to be

framed for further participation and employment of employees in a

concern. Therefore, all types of incentive plans becomes an integral part of

staffing function.

4. Human Better relations:

A concern can stabilize itself if human relations develop and are strong.

Human relations become strong trough effective control, clear

communication, effective supervision and leadership in a concern. Staffing

function also looks after training and development of the work force which

leads to co-operation and better human relations.

5. Higher productivity:

Productivity level increases when resources are utilized in best possible

manner. higher productivity is a result of minimum wastage of time,

money, efforts and energies.This is possible through the staffing and it's

related activities ( Performance appraisal, training and development,

remuneration)

NEED OF MANPOWER PLANNING

Manpower Planning is a two-phased process because manpower planning not

only analyses the current human resources but also makes manpower forecasts

and thereby draw employment programmes. Manpower Planning is advantageous

to firm in following manner:



1. Shortages and surpluses can be identified so that quick action can be taken

wherever required.

2. All the recruitment and selection programmes are based on manpower

planning.

3. It also helps to reduce the labour cost as excess staff can be identified and

thereby overstaffing can be avoided.

4. It also helps to identify the available talents in a concern and accordingly

training programmes can be chalked out to develop those talents.

5. It helps in growth and diversification of business. Through manpower

planning, human resources can be readily available and they can be

utilized in best manner.

6. It helps the organization to realize the importance of manpower

management which ultimately helps in the stability of a concern.



PROJECT PLANNING A STEP BY STEP GUIDE

The key to a successful project is in the planning. Creating a project plan is the

first thing you should do when undertaking any kind of project.

Often project planning is ignored in favour of getting on with the work. However,

many people fail to realize the value of a project plan in saving time, money and

many problems.

This article looks at a simple, practical approach to project planning. On

completion of this guide, you should have a sound project planning approach that

you can use for future projects.

Step 1: Project Goals

A project is successful when the needs of the stakeholders have been met. A

stakeholder is anybody directly, or indirectly impacted by the project.

As a first step, it is important to identify the stakeholders in your project. It is not

always easy to identify the stakeholders of a project, particularly those impacted

indirectly. Examples of stakeholders are:



The project sponsor.

The customer who receives the deliverables.

The users of the project outputs.

The project manager and project team.

Once you understand who the stakeholders are, the next step is to find out their

needs. The best way to do this is by conducting stakeholder interviews. Take time

during the interviews to draw out the true needs that create real benefits. Often

stakeholders will talk about needs that aren't relevant and don't deliver benefits.

These can be recorded and set as a low priority.

The next step, once you have conducted all the interviews, and have a

comprehensive list of needs is to prioritise them. From the prioritised list, create a

set of goals that can be easily measured. A technique for doing this is to review

them against the SMART principle. This way it will be easy to know when a goal

has been achieved.

Once you have established a clear set of goals, they should be recorded in the

project plan. It can be useful to also include the needs and expectations of your

stakeholders.

This is the most difficult part of the planning process completed. It's time to

move on and look at the project deliverables.

Step 2: Project Deliverables

Using the goals you have defined in step 1, create a list of things the project

needs to deliver in order to meet those goals. Specify when and how each item

must be delivered.


http://www.projectsmart.co.uk/smart-goals.html


Add the deliverables to the project plan with an estimated delivery date. More

accurate delivery dates will be established during the scheduling phase, which is

next.

Step 3: Project Schedule

Create a list of tasks that need to be carried out for each deliverable identified in

step 2. For each task identify the following:

The amount of effort (hours or days) required to complete the task.

The resource who will carryout the task.

Once you have established the amount of effort for each task, you can workout

the effort required for each deliverable, and an accurate delivery date. Update

your deliverables section with the more accurate delivery dates.

At this point in the planning, you could choose to use a software package such as

Microsoft Project to create your project schedule. Alternatively, use one of the

many free templates available. Input all of the deliverables, tasks, durations and

the resources who will complete each task.

A common problem discovered at this point, is when a project has an imposed

delivery deadline from the sponsor that is not realistic based on your estimates. If

you discover that this is the case, you must contact the sponsor immediately. The

options you have in this situation are:

Renegotiate the deadline (project delay).

Employ additional resources (increased cost).

Reduce the scope of the project (less delivered).


http://www.projectsmart.co.uk/introduction-to-microsoft-project.html


Use the project schedule to justify pursuing one of these options.

Step 4: Supporting Plans

This section deals with plans you should create as part of the planning process.

These can be included directly in the plan.

HUMAN RESOURCE PLAN

Identify by name, the individuals and organisations with a leading role in the

project. For each, describe their roles and responsibilities on the project.

Next, describe the number and type of people needed to carryout the project. For

each resource detail start dates, estimated duration and the method you will use

for obtaining them.

Create a single sheet containing this information.

COMMUNICATIONS PLAN

Create a document showing who needs to be kept informed about the project and

how they will receive the information. The most common mechanism is a weekly

or monthly progress report, describing how the project is performing, milestones

achieved and work planned for the next period.

RISK MANAGEMENT PLAN

Risk management is an important part of project management. Although often

overlooked, it is important to identify as many risks to your project as possible,

and be prepared if something bad happens.


http://www.projectsmart.co.uk/10-golden-rules-of-project-risk-management.html

http://www.projectsmart.co.uk/progress-reporting.html


Here are some examples of common project risks:

Time and cost estimates too optimistic.

Customer review and feedback cycle too slow.

Unexpected budget cuts.

Unclear roles and responsibilities.

Stakeholder input is not sought, or their needs are not properly understood.

Stakeholders changing requirements after the project has started.

Stakeholders adding new requirements after the project has started.

Poor communication resulting in misunderstandings, quality problems and

rework.

Lack of resource commitment.

Risks can be tracked using a simple risk log. Add each risk you have identified to

your risk log; write down what you will do in the event it occurs, and what you

will do to prevent it from occurring. Review your risk log on a regular basis,

adding new risks as they occur during the life of the project. Remember, when

risks are ignored they don't go away.

STAFFING OF HUMAN RESOURCES PLANNING

NEW HIRE PROCEDURES

HR Practices provides advance staffing planning to anticipate and meet your

long-term human capital requirements. We’ll find the highest quality team

members within manageable financial parameters.

Some of the services we provide:

Job Cost-effective recruiting resources



Background and reference checks

Clear and understandable Descriptions

TALENT MANAGEMENT AND DEVELOPMENT

Training and Development resources to enable your entire team to perform

at their best with a spirit of mutual respect and support

Job Performance Evaluations with useful feedback for your managers

Career Path programs that will promote team motivation and loyalty

Fair and responsible Conflict Resolution that will protect your organization

legally

Disciplinary and Termination procedures

Exit Interviews to provide insights that will lower expensive attrition rates

Wage and Hour compliance

TEAM MANAGEMENT AND DEVELOPMENT

o Effective Leadership Skills Development for managers to encourage

their strongest, most positive efforts and to help them exceed even their own

expectations

o Enhance and improve communication skills between management

and staff, enabling your entire team to understand and support your Mission

and long-term goals.

o Incentive Compensation Plans to keep and reward highly valued

employees


hrp project[1]

Documents