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Human Resource Planning

This book is a part of the course by Jaipur National University, Jaipur.This book contains the course content for Human Resource Planning.

JNU, JaipurFirst Edition 2013

The content in the book is copyright of JNU. All rights reserved.No part of the content may in any form or by any electronic, mechanical, photocopying, recording, or any other means be reproduced, stored in a retrieval system or be broadcast or transmitted without the prior permission of the publisher.

JNU makes reasonable endeavours to ensure content is current and accurate. JNU reserves the right to alter the content whenever the need arises, and to vary it at any time without prior notice.

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Index

ContentI. ...................................................................... II

List of FiguresII. ......................................................VIII

List of TablesIII. ..........................................................IX

AbbreviationsIV. ......................................................... X

Case StudyV. .............................................................. 109

BibliographyVI. ........................................................ 112

Self Assessment AnswersVII. ................................... 115

Book at a Glance

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Contents

Chapter I ....................................................................................................................................................... 1Introduction to Human Resource Planning System: The Emerging Context ........................................ 1Aim ................................................................................................................................................................ 1Objectives ...................................................................................................................................................... 1Learning outcome .......................................................................................................................................... 11.1 Introduction .............................................................................................................................................. 21.2 The Importance of HRP ........................................................................................................................... 21.3 Meaning and definition of HRP ............................................................................................................... 31.4 Need for Planning .................................................................................................................................... 31.5 Types of Plans .......................................................................................................................................... 4 1.5.1 Philosophy .............................................................................................................................. 4 1.5.2 Purpose .................................................................................................................................... 4 1.5.3 Objectives ............................................................................................................................... 4 1.5.4 Strategies .................................................................................................................................. 4 1.5.5 Policies .................................................................................................................................... 4 1.5.6 Procedure and Rules ............................................................................................................... 4 1.5.7 Programmes ............................................................................................................................ 4 1.5.8 Budget ..................................................................................................................................... 41.6 The Process of Planning ........................................................................................................................... 4 1.6.1 Organisational Objectives and Policies ................................................................................... 51.7 Forecasting Techniques ............................................................................................................................ 5 1.7.1 HR Demand Forecast ............................................................................................................... 5 1.7.2 HR Supply Forecast ................................................................................................................. 6 1.7.3 New Venture Analysis .............................................................................................................. 6 1.7.4 Other Forecasting Methods ...................................................................................................... 61.8 Examining the External and Internal Issues ............................................................................................. 6 1.8.1 Work Force Demographics ..................................................................................................... 6 1.8.2 Technology ............................................................................................................................... 6 1.8.3 Organisational Structure .......................................................................................................... 7 1.8.4 Business Strategy ..................................................................................................................... 71.9 Determining Future Organisational Capabilities ..................................................................................... 71.10 Determining Future Organisational Needs ............................................................................................ 71.11 Implementing HR Programme to address Anticipated Problems .......................................................... 8 1.11.1 Communicate Need for the Programme................................................................................. 8 1.11.2 Explain the Programme .......................................................................................................... 8 1.11.3 Explain what is Expected of the Employees .......................................................................... 8 1.11.4 Establish Feedback Mechanisms ........................................................................................... 81.12 The role of HRP professionals ............................................................................................................... 8 1.12.1 Impact of HRP ....................................................................................................................... 9 1.12.2 Impact of Technology on HRP ............................................................................................... 9 1.12.3 HR Programming ................................................................................................................. 10 1.12.4 HR Plan Implementation ..................................................................................................... 10 1.12.5 Control and Evaluation ........................................................................................................ 101.13 Barriers to HRP .................................................................................................................................... 10Summary ..................................................................................................................................................... 12References ................................................................................................................................................... 12Recommended Reading ............................................................................................................................. 13Self Assessment ........................................................................................................................................... 14

Chapter II ................................................................................................................................................... 16Process and Functions of Human Resource Planning ............................................................................ 16Aim .............................................................................................................................................................. 16Objectives .................................................................................................................................................... 16

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Learning outcome ........................................................................................................................................ 162.1 Introduction (The concept and process of HRP) .................................................................................... 172.2 Preliminaries to Review ......................................................................................................................... 192.3 Manning Standards and Utilisation ........................................................................................................ 192.4 HR Information Systems ........................................................................................................................ 202.5 HR Inventory and Analysis .................................................................................................................... 20 2.5.1 Flows ...................................................................................................................................... 202.6 HR Supply Planning .............................................................................................................................. 202.7 HR Control and Audit ............................................................................................................................ 212.8 Management HR Planning ..................................................................................................................... 21 2.8.1 Corporate Culture .................................................................................................................. 21 2.8.2 Periodic Full Reviews ............................................................................................................ 21 2.8.3 Frequency ............................................................................................................................... 222.9 Application to Individual Decisions ....................................................................................................... 22Summary ..................................................................................................................................................... 24References ................................................................................................................................................... 24Recommended Reading ............................................................................................................................. 24Self Assessment ........................................................................................................................................... 25

Chapter III .................................................................................................................................................. 27Methods and Techniques of Demand Management ................................................................................ 27Aim .............................................................................................................................................................. 27Objectives .................................................................................................................................................... 27Learning outcome ........................................................................................................................................ 273.1 Introduction ............................................................................................................................................ 283.2 Human Resource Forecasting ................................................................................................................ 283.3 Forecasting Demand for Employees ...................................................................................................... 29 3.3.1 Economic Factors ................................................................................................................. 29 3.3.2 Social Factors ......................................................................................................................... 29 3.3.3 Demographic Factors ............................................................................................................. 29 3.3.4 Competition ........................................................................................................................... 29 3.3.5 Technological Factors ............................................................................................................ 29 3.3.6 Growth and Expansion of Business ....................................................................................... 29 3.3.7 Management Philosophy/Leadership ..................................................................................... 29 3.3.8 Innovative Management ........................................................................................................ 303.4 Managerial Dilemma ............................................................................................................................. 303.5 Issues in Demand Forecasting ............................................................................................................... 31 3.5.1 Social Factors ......................................................................................................................... 31 3.5.2 Technological Factors ............................................................................................................ 31 3.5.3 Political Factors ..................................................................................................................... 31 3.5.4 Economic Factors .................................................................................................................. 32 3.5.5 Demand Generation ............................................................................................................... 32 3.5.6 Growth ................................................................................................................................... 32 3.5.7 Employee Turnover ................................................................................................................ 32 3.5.8 Technological Shifts ............................................................................................................... 323.6 Forecasting Techniques .......................................................................................................................... 33 3.6.1 Managerial Judgement ........................................................................................................... 33 3.6.2 Ratio-trend Analysis .............................................................................................................. 33 3.6.3 Work-study Technique ........................................................................................................... 33 3.6.4 Delphi Technique ................................................................................................................... 34 3.6.5 Flow Models .......................................................................................................................... 343.7 Creation of an HR/Staffing Plan ............................................................................................................ 34 3.7.1 Internal Considerations .......................................................................................................... 34 3.7.2 Wastage Analysis ................................................................................................................... 343.8 Conclusion ............................................................................................................................................. 35

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Summary ..................................................................................................................................................... 36References ................................................................................................................................................... 36Recommended Reading ............................................................................................................................. 37Self Assessment ........................................................................................................................................... 38

Chapter IV .................................................................................................................................................. 40Methods and Techniques for Supply Management ................................................................................. 40Aim .............................................................................................................................................................. 40Objectives .................................................................................................................................................... 40Learning outcome ........................................................................................................................................ 404.1 Introduction ............................................................................................................................................ 414.2 Human Resource Inventory ................................................................................................................... 41 4.2.1 Age Distribution ..................................................................................................................... 42 4.2.2 Skills Inventory ...................................................................................................................... 42 4.2.3 Length of Service ................................................................................................................... 424.3 Factors Affecting Internal Levels ........................................................................................................... 43 4.3.1 Reasons for Increase in Employee Groups ............................................................................ 43 4.3.2 Reasons for Decrease in Employment Groups Promotions Out ............................................ 454.4 Employee Turnover Analysis ................................................................................................................. 464.5 The Cohort Method ................................................................................................................................ 474.6 The Census Method ............................................................................................................................... 484.7 Markov Chain ........................................................................................................................................ 484.8 Renewal Models ..................................................................................................................................... 49Summary ..................................................................................................................................................... 50References ................................................................................................................................................... 50Recommended Reading ............................................................................................................................. 51Self Assessment ........................................................................................................................................... 52

Chapter V .................................................................................................................................................... 54Contemporary Trends in Managing Demand and Supply ..................................................................... 54Aim .............................................................................................................................................................. 54Objectives .................................................................................................................................................... 54Learning outcome ........................................................................................................................................ 545.1 Introduction ............................................................................................................................................ 555.2 Emerging Organisation Structures ......................................................................................................... 555.3 Transformations at the Workplace ......................................................................................................... 565.4 Flexible Workplace ................................................................................................................................ 565.5 Building a Culture .................................................................................................................................. 575.6 Performance Appraisals ......................................................................................................................... 585.7 Staffing ................................................................................................................................................... 585.8 Compensation and Benefits ................................................................................................................... 595.9 Dealing with Relocations and Redundancies ......................................................................................... 595.10 Human Resource Measures and Audit ................................................................................................. 60 5.10.1 Personnel Measures ............................................................................................................. 615.11 Trends in the Labour Supply ................................................................................................................ 62 5.11.1 Changes in the Composition of the Population .................................................................... 62 5.11.2 Subgroup Participation Changes .......................................................................................... 62 5.11.3 Labour Force Quality ........................................................................................................... 62 5.11.4 Level of Education ............................................................................................................... 62 5.11.5 Women in the Labour Force ................................................................................................. 63 5.11.6 The Older Employee ............................................................................................................ 63 5.11.7 Handicapped Workers in the Labour Force ......................................................................... 63 5.11.8 Part-time and Full-time Time Work ..................................................................................... 635.12 Trends in Labour Demand ................................................................................................................... 64 5.12.1 Implications for Personnel/HR Activities ............................................................................ 64

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5.12.2 Succession Planning ............................................................................................................ 64 5.12.3 Assessment Centres .............................................................................................................. 65 5.12.4 Employee Replacement Chart ............................................................................................. 65Summary ..................................................................................................................................................... 67References ................................................................................................................................................... 67Recommended Reading ............................................................................................................................. 68Self Assessment ........................................................................................................................................... 69

Chapter VI .................................................................................................................................................. 71Job Analysis ................................................................................................................................................ 71Aim .............................................................................................................................................................. 71Objectives .................................................................................................................................................... 71Learning outcome ........................................................................................................................................ 716.1 Introduction ............................................................................................................................................ 726.2 Job Analysis ........................................................................................................................................... 726.3 Some Considerations ............................................................................................................................. 736.4 Method of Collecting Information ......................................................................................................... 73 6.4.1 Job Questionnaire .................................................................................................................. 73 6.4.2 Interview ................................................................................................................................ 74 6.4.3 Observation ............................................................................................................................ 74 6.4.4 Independent Observers .......................................................................................................... 756.5 Job Analysis: Process ............................................................................................................................. 76 6.5.1 Technological Change ............................................................................................................ 76 6.5.2 Union- Management Agreements .......................................................................................... 76 6.5.3 People ..................................................................................................................................... 766.6 Steps in the Job Analysis Process .......................................................................................................... 76 6.6.1 Organisation Analysis ............................................................................................................ 76 6.6.2 Uses of Job Analysis Information .......................................................................................... 76 6.6.3 Selection of Jobs for Analysis ................................................................................................ 77 6.6.4 Collection of Data .................................................................................................................. 77 6.6.5 Preparation of Job Description .............................................................................................. 77 6.6.6 Preparation of Job Specification ............................................................................................ 776.7 Job Description ...................................................................................................................................... 776.8 Design of Job Description ...................................................................................................................... 786.9 Uses of Job Description ......................................................................................................................... 78 6.9.1 Supervisor- Employee Communication ................................................................................. 78 6.9.2 Recruitment, Selection, Promotion, and Transfer .................................................................. 79 6.9.3 Work Performance Appraisal ................................................................................................. 79 6.9.4 Manpower Planning, Training and Development .................................................................. 79 6.9.5 Industrial Relations ................................................................................................................ 79 6.9.6 Organisation and Procedure Analysis .................................................................................... 796.10 Job Specification .................................................................................................................................. 80 6.10.1 From Job Analysis to Jobless World .................................................................................... 80Summary ..................................................................................................................................................... 81References ................................................................................................................................................... 81Recommended Reading ............................................................................................................................. 82Self Assessment ........................................................................................................................................... 83

Chapter VII ................................................................................................................................................ 85Changing Nature of Roles ......................................................................................................................... 85Aim .............................................................................................................................................................. 85Objectives .................................................................................................................................................... 85Learning outcome ........................................................................................................................................ 857.1 Introduction ............................................................................................................................................ 86 7.1.1 Role and Role Dynamics ....................................................................................................... 86

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7.2 Role Description .................................................................................................................................... 867.3 Kinds of Roles........................................................................................................................................ 87 7.3.1 Interpersonal ......................................................................................................................... 87 7.3.2 Informational ......................................................................................................................... 87 7.3.3 Decisional .............................................................................................................................. 877.4 Need for Role Descriptions .................................................................................................................... 887.5 Uses of Role Descriptions ...................................................................................................................... 887.6 Changing Roles: Approaches ................................................................................................................. 89 7.6.1 Skill Behaviour Matrix .......................................................................................................... 89 7.6.2 Configuration Matrix ............................................................................................................. 89 7.6.3 Other Approaches .................................................................................................................. 897.7 The Changing World of Work ................................................................................................................ 907.8 Factors Contributing to Role Changes ................................................................................................... 90 7.8.1 Technology Upgradation ........................................................................................................ 90 7.8.2 Information Technology ......................................................................................................... 91 7.8.3 Competition ........................................................................................................................... 91 7.8.4 Women in Work ..................................................................................................................... 917.9 Role Expectations .................................................................................................................................. 91Summary ..................................................................................................................................................... 93References ................................................................................................................................................... 93Recommended Reading ............................................................................................................................. 94Self Assessment ........................................................................................................................................... 95

Chapter VIII ............................................................................................................................................... 97Human Resource Information Systems ................................................................................................... 97Aim .............................................................................................................................................................. 97Objectives .................................................................................................................................................... 97Learning outcome ........................................................................................................................................ 978.1 Introduction ............................................................................................................................................ 988.2 Concepts of HRIS .................................................................................................................................. 988.3 Need for HRIS ....................................................................................................................................... 988.4 Technology Shifts and HRIS .................................................................................................................. 998.5 Effectiveness of HRIS ............................................................................................................................ 99 8.5.1 Adequacy of Information ....................................................................................................... 99 8.5.2 Specificity .............................................................................................................................. 99 8.5.3 Relevance ............................................................................................................................... 99 8.5.4 Comprehensiveness ............................................................................................................. 100 8.5.5 Reliability ............................................................................................................................. 1008.6 IT supported HRIS ............................................................................................................................... 100 8.6.1 Deficiencies of the Manual System .................................................................................... 100 8.6.2 Advantages of Computerisation ........................................................................................... 1008.7 Designing and Implementing HRIS ..................................................................................................... 101 8.7.1 Formation of a Project Team ............................................................................................... 101 8.7.2 Training of those who will be Managing and using HRIS .................................................. 101 8.7.3 Ensuring Security and Privacy ............................................................................................. 1018.8 HRIS as a Tool ..................................................................................................................................... 1018.9 Prerequisites for Introducing “Informating” HRIS .............................................................................. 102 8.9.1 The Corporate Climate ......................................................................................................... 102 8.9.2 An Enlightened Human Resource Function ......................................................................... 102 8.9.3 The Technology Platform ..................................................................................................... 1028.10 HRIS Leadership ................................................................................................................................ 103 8.10.1 Vision ................................................................................................................................. 103 8.10.2 Technical Skills .................................................................................................................. 103 8.10.3 Business Acumen ............................................................................................................... 103 8.10.4 Ability to Influence and Negotiate ..................................................................................... 103

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8.10.5 Team Leadership ................................................................................................................ 103 8.10.6 Project Management .......................................................................................................... 1038.11 Conclusion ......................................................................................................................................... 104Summary ................................................................................................................................................... 105References ................................................................................................................................................. 105Recommended Reading ........................................................................................................................... 106Self Assessment ......................................................................................................................................... 107

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List of Figures

Fig. 1.1 The HRP process .............................................................................................................................. 5Fig. 2.1 The HRP process ............................................................................................................................ 18Fig. 3.1 Assumptions at the time of demand forecasting ............................................................................. 30Fig. 4.1 Influences on HR inventory levels ................................................................................................. 44Fig. 4.2 Promotion channels (Inwards) ........................................................................................................ 44Fig. 4.3 Promotion channels ........................................................................................................................ 45Fig. 4.4 Feeder and receiving group for promotions ................................................................................... 45Fig. 4.5 Cohort survivors function applied over three years ........................................................................ 47Fig. 4.6 Markov chain .................................................................................................................................. 48Fig. 5.1 Organisation structures ................................................................................................................... 55

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List of Table

Table 1.1 Human resource planning- a win-win process ............................................................................. 23

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Abbreviations

AICTE - All India Council for Technical EducationATM - Automatic Teller MachinesC&B - CompensationandBenefitsCAD - Computer Aided DesignCAM - Computer Aided ManufacturingHR - Human ResourceHRIS - Human Resource Information SystemsHRM - Human Resource ManagementHRP - Human Resource PlanningIIT - Indian Institute of TechnologyILO - International Labour OrganisationIT - Information TechnologyL&T - Larsen and ToubroMIT - Massachusetts Institute of TechnologyR&D - Research and DevelopmentT&D - Training and DevelopmentUSSR - Union of Soviet Socialist Republic

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Chapter I

Introduction to Human Resource Planning System: The Emerging Context

Aim

The aim of this chapter is to:

introduce the concept of human resource planning•

explain the importance of human resource planning•

explore the need for human resource planning•

Objectives

The objectives of this chapter are to:

explicate the techniques of forecasting•

enlist the types of plans•

elucidate the planning process•

Learning outcome

At the end of this chapter, you will be able to:

analyse the various forecasting techniques•

identify the barriers human resource planning•

understand the importance of human resource planning•


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1.1 IntroductionPlanningtherightmanforrightjobanddevelopinghimintoanefficientteammemberisavitaltaskofeverymanager.HRisasignificantcorporateassetandperformanceoforganisationsdependsuponthewayitisputinuse.HRPisapurposeful strategy for acquisition, improvement and preservation of enterprise’s human resources. It is a managerial function that aims at coordinating the requirements for and availability of diverse types of employees. This involves ensuringthattheorganisationhastherightkindofpeopleatrighttimeandalsofine-tunetherequirementstotheavailable supply.

HRP is a forward looking function and an organisational tool to recognise skill and competency gaps and then develop plans for development of lacking skills and competencies in human resources to stay competitive. HRP is influencedbytechnologicalchangesandotherglobalbusinesspressures.HRPensuresbenefitstotheorganisationsby creating a pool of talent, preparing people for future cost cutting and succession planning besides creating a back-upplanincaseofdiversificationandgrowth.

Humanresourceplanningshouldbeanessentialpartofbusinessplanning.Theplanningprocessdefinesprojectedchangesin thetypesofactivitiescarriedoutbytheorganisationandthedegreeof thoseactivities.It identifiesthe core competencies required by the organisation to achieve its goals. Human resource planning infers people requirements in terms of stalls and competencies. As Quinn Mills indicates, human resource planning is a decision making process that combines three important activities

identifying and acquiring the right number of people with the proper skills, •motivating them to achieve high performance, and •creating interactive links between business objectives and resource planning activities. •

Human resource planning is certainly concerned with broader issues about the employment of people than the conventionalquantitativemodelapproachofmanpowerplanning.Butitspecificallyfocusesonthoseaspectsofhuman resource management that are mainly concerned with the organisation’s requirements for people from the point of view of numbers, skills and how they are organised. However, it must be recognised that even though the view of human resource planning is well established in the HRM vocabulary, it is not established as a key HR action.

1.2 The Importance of HRPHuman resource planning is imperative for helping both organisations and employees to plan for the future but it is often thought that situations are dynamic and they keep changing like for instance, there was a time when the legal profession was considered to be a good profession but lately it is highly overcrowded. So in such situations the very purpose of planning is somewhat doubted. However, the answer is that even an imperfect forecast of the future can be quite helpful. Consider weather forecasts. You can probably think of times when it snowed, even though the television weather forecaster forecasted there would be no snow. On the other hand, you can probably think of times when it did not snow, even though the weather forecaster predicted a foot of snow by the next morning. It may be surprising to know that as imprecise as weather forecasts sometimes seem to be many organisations, that pay a forecasting service for regular weather updates. The reason for this is quite simple. Even a production that is sometimes erroneous is better than no forecast or production at all. Maybe the ideal example is the stock market. If someone had even a moderately accurate way to foresee which stocks would go up and which stocks would go down, that person could make a great deal of money investing in the stock market, even though there would be some errors. The answer is whether ones production tool improves the chances of making the right decisions. Even though the projecting tool may not be always accurate, as long as it is more accurate than arbitrary and random guessing it will result in better decisions.

The same aspect is applicable to human resource planning. Even though neither organisations nor employees can look into the future, making predictions can be quite useful, even if they are not always accurate. The crucial goal of human resource planning, then, is to forecast the future and, based on these predictions, employ programmes to evade anticipated or expected problems. In brief, humans resource planning is the process of examining an organisations or individuals future human resource needs (for instance, what types of skills will be needed for jobs of the future) compared to future human resource capabilities (such as the types of skills employees or you already

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have) and developing human resource policies and practices to address potential problems for example, executing trainingprogrammestopreventskilldeficiencies.

1.3 Meaning and definition of HRPSimply put, HRP is understood as the process of forecasting an organisation’s future human resource demand for, and supply to meet the objectives such as the apt type of people in the right number. Only after this process can the HRM departments commence the recruitment and selection process. HRP is a sub-system in the total organisational planning. Organisational planning involves managerial activities that lay down the company’s objectives for the futureanddefinessuitablemeansforachievingthoseobjectives.HRPfacilitatestherealisationofthecompany’sobjectives for the future and determines appropriate means for achieving those objectives.

HRP also aids in the realisation of the company’s objectives by providing the right type and the right number of personnel. HRP is given several names- manpower planning, personnel planning or employment planning. Human resource planning is the method by which an organisation ensures that it has the right number and kind of people, at therightplace,attherighttime,capableofeffectivelyandefficientlycompletingtasksthatwillhelptheorganisationachieve its overall objective. Human resource planning, then converts the organisation’s objectives and plans into the number of workers needed to meet those objectives. With no a clear cut planning, assessment of human resource need is reduced to sheer guesswork.

1.4 Need for PlanningThe need for planning occurs mainly due to the fact that modern organisations have to survive, operate and grow in highly competitive market economics where change is the prevailing principle. The change may be either revolutionary (sudden) or evolutionary (slow). The diverse areas of change include: change in technology, change in population, change in economic structures and systems, change in policies of government, change in employee attitudes behaviour. etc. These changes create obstacles for the management through threats and challenges. Managers have to tolerate the problems caused due to the changes and act upon them delicately in order to avoid or reduce the effectsoftheseproblemsonthesurvival,operationandgrowthoftheorganisation.Efficientmanagerscanpredictthe problems that are probable to occur and try to check them. As pointed by Terry, successful managers deal with foreseen problems and unproductive managers struggle with unforeseen problems. The difference lies in planning. Managers have to foresee to make the future favourable to the organisation in order to achieve the goals effectively. They introduce action, conquer current problems, avert future uncertainties, adjust the goals with the unforeseen environmental conditions and apply all their resources to achieve their goals. According to Megginson, et al “to have an organisation that looks forward to the future and tries to stay alive and prosper in a changing world, there must be active, vigorous, continuous and creative planning”. Thus, there is a superior need for planning in order to keep the organisation dynamic in a changing situation of uncertainty.

Morespecifically,HRPisrequiredtomeetfollowingobjectives:Forecast HR requirement.•Cope-up with the change — in market conditions, technologies, products, government regulations and policies, •etc.Use existing HR productivity.•Promoteemployeesinasystematicmanner.Ifusedproperly,itoffersanumberofbenefits:•

Create reservoir of talent. �Prepares people for future. �Expand or contract. �Cut cost. �Succession planning. �


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1.5 Types of PlansThere are nine types of plans such as, philosophy, purpose, objectives, strategies, policies, procedures and rules, programmes and budgets. They have been discussed below:

1.5.1 Philosophy Every organisation aims at formulating its own philosophy. The philosophy of the company should have lucidity and clarity of thought and action in the achievement of economic objectives of a country. The philosophy connects the space/gap between society and the company.

1.5.2 Purpose Every kind of organised group activities or operations has a rationale. For example, the purpose of a bank is to accept deposits and grant loans and advances.

1.5.3 Objectives Objectives are the ends towards which organisational activity is aimed. Every department has its own objectives which may not be totally similar to the other departments or organisations.

1.5.4 StrategiesStrategy is determination of the fundamental long term objectives of an enterprise and the implementation of courses of action and allocation of resources needed to achieve these goals.

1.5.5 Policies Policies are general statements or understandings which direct or express thinking and action in decision making. However, all policies are not statements.

1.5.6 Procedure and Rules Procedures are plans that launch a desired method of managing future activities. They detail the accurate manner in which a certain activity must be achieved.

1.5.7 Programmes These are complexes of goals, policies, procedures, task assignment rules, steps to be taken, or sources to be employed and other elements essential to carry out a given course of action.

1.5.8 Budget A budget is a statement of predictable results in terms of members. It may be referred to as a numerical programme. Cash budget, sales budget, capital expenditure budget are some of the examples of budget.

1.6 The Process of PlanningThe planning process is affected by overall organisational objectives and the situation of business. HRP is primarily involved in forecasting human resource requirements, assessing human resource supply and harmonising demand supply factors through human resource related programmes.

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Environment

OrganisationalObjectives and Policies

tsaceroF ylppuS RHtsaceroF sdeeN RH

HR Programming

HRPImplementation

Control andEvaluation of Programme

Surplus ShortageRestricted Hiring Recruitment

noitceleS dnasruoH decudeRVRS, Lay Off, etc.

Fig. 1.1 The HRP process

1.6.1 Organisational Objectives and PoliciesHR plans to be made based on organisational objectives means that the objectives of the HR plan must be consequent fromorganisationalobjectives.Specificrequirementsintermsofnumberandcharacteristicsofemployeesshouldbederivedfromtheorganisationalobjectives.Organisationalobjectivesaredefinedbythetopmanagementandtheroleof HRP is to sub serve the entire set of objectives by ensuring the availability and utilisation of human resources.

1.7 Forecasting TechniquesForecasting techniques differ from simple to sophisticated ones. It may be stated that organisations generally follow more than one technique. The techniques are:

Managerial Judgement•Ratio Trend Analysis•Work Study Techniques•Delphi Technique•Flow Models•Others•

1.7.1 HR Demand ForecastDemand forecast is the procedure of approximating the future quantity and quality of people required. The foundation of the forecast must be the annual budget and long term corporate plan, translated into activity levels for each function and department. Demand forecasting must consider factors which are both external and internal. The external factors include competition, economic climate, laws and regulatory bodies, changes in technology and social factors. Internal factors include budget constraints, production levels, new products and services, organisational structure and employee separations.


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1.7.2 HR Supply ForecastPersonnel Demand analysis provides the manager with the means of estimating the number and kind of employees that will be needed. The next step for the management is to decide whether it will be able to obtain the required number of personnel and the sources for such procurement. This information is provided by supply forecasting. Supply forecasting ascertains the number of people likely to be available from within and outside an organisation, after making allowance for absenteeism, internal movements and promotions, wastage and changes in hours and other circumstances of work.

1.7.3 New Venture AnalysisNew venture analysis will be valuable when new ventures consider employment planning. This technique requires planners to estimate HR needs in line with companies that perform similar operations. For example, a petroleum company that plans to open a coal mine can estimate its future employment by deciding employment levels of other coal mines.

1.7.4 Other Forecasting MethodsThe organisations pursue more than one technique for forecasting their peoples’ needs. L&T, for example, follows ‘bottom-up’ of management judgment and work study procedures for demand forecasting.

Example: The forecasting process in L&T begins during November of every year. The department heads arrange their personnel estimates (based on details of production budget supplied to them) and present the estimates to the particular personnel managers. The personnel heads will assess the estimates with the departmental heads and will sendfinalreportstotheBombayofficewherethecentralisedHRdepartmentislocated.EstimatesarereviewedbytheHRdepartmentandfinalfiguresaredeclaredtothosepersonnelmanagerswhocommencestepstoappointtherequirednumberofpeopleinthefollowingyear.Theforecastismadeonceinfiveyears,butisbrokendownto yearly requirements. We turn now to approaches to human resource planning and discuss some important trends that will affect organisation, employees, and job applicants alike. Each of these steps is discussed below in detail.

1.8 Examining the External and Internal IssuesExternal and internal issues are the factors that impel human resource planning. An issue is any event or trend that has the potential to affect human resource conclusions, such as employee motivation, turnover, absenteeism, the number and types of employees needed etc. External issues are events or trends outside of the organisation, such as work force demographics and technology. Internal issues refer to events or trends within the organisation, such asbusinessstrategy,organisationsstructureandcompanyprofitability.

1.8.1 Work Force Demographics Potentially vital external issue is the composition of the national workforce. Particularly, there are likely to be changes in the social, gender and age composition of the workforce. Asians will comprise a large percentage of the workforce in the future. Women are also expected to include a large segment of the workforce than what was earlier. The number of married women who are employed has doubled since 1970. The enhanced involvement of women willhaveastrainonorganisationstoprovidepro-familypolicies,suchasflexibletimingsandchildcaretosupportworking mothers. Higher representation of minorities will result in greater stress on diversity programmes to make sure harmonious relations between workers from different racial and ethnic backgrounds.

1.8.2 TechnologyOrganisations had invested high amounts on information technology during the 1980s. Given the size of the investment, a range of changes in the human resource area have occurred. Human resource requirements have decreased drastically because of technological changes.

There are many organisations that have declared plans to decrease its workforce to around 50 per cent employees as an outcome of technological changes.

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1.8.3 Organisational StructureMany businesses nowadays are varying their organisational structure. Organisational structure refers to how work tasks are assigned, who reports to whom, how communications and decisions are made etc. As a part of their reorganisation/restructuring a few companies are creating teams to carry out the work.

1.8.4 Business StrategyThe approach that a company assumes in carrying out business is referred to as its business strategy/policy. For example, a particular company may adopt strategy on quality improvement, cost reduction etc. It is imperative for organisations to supervise both the internal and external environment to foresee and understand the issues that will affect human resources in the future.

1.9 Determining Future Organisational CapabilitiesThe second step of the human resource planning process involves a study of future organisational or personal capabilities. Capabilities involve the skill level of employees, productivity rates and number of employees, etc. Earlier, greater emphasis was on predicting the number of employees of human resource supply the company was likely to have in the future. Organisations may use a variety of procedures to estimate the supply. These procedures are generally categorised as either quantitative which use mathematical or statistical procedures or qualitative which use subjective judgment approaches. The quantitative procedure generally makes use of past information about job categories and the number of people retiring, being terminated, leaving the organisation voluntarily or being promoted. One of the most popular quantitative procedures is the Markov analysis. This technique uses historical rates of promotion, transfer and turnover to assess future availabilities in the workforce. On the basis of the past abilities, one can guess the number of employees who will be in various positions within the organisation in the future.

Qualitative or judgmental approaches are way more popular in forecasting human resource supplies. Among the most commonly used methods are- replacement planning, succession planning and vacancy analysis. Replacement planning involves an assessment of potential candidates to substitute existing executives and other top level managers as they retire or leave for other organisations. Succession planning is akin to replacement planning, except that it is more long term and developmentally oriented. Finally, vacancy analysis is quite similar to the Markov analysis, except that it is based on managerial judgments of the probabilities. If conversant experts present estimates, vacancy analysis can be quite precise and accurate.

In recent years, organisations have become concerned with a wider choice of issues of future capabilities. For example, organisations have started estimating their future productivity levels. Towards this end, bench marking is a technique that has become widely accepted and widely incorporated. Bench marking involves comprising an organisation’s human resource practices and programmes to other organisations.

Although benchmarking frequently focuses on an organisation’s competitors, best practices benchmarking focuses on the programmes and policies used by exceptional organisations. For example, Federal express, leadership evaluation system, employee survey programme and total quality management efforts are frequently studied by other organisations because of their standing and reputation.

1.10 Determining Future Organisational NeedsIn this step, the organisation must decide what is human resource needs will be in the future. This includes the number of employees that will be required, the types of skills that will be needed. Productivity rates are needed to compete successfully. There are methods for investigating the future number of employees and also there are several procedures for predicting the number of employees needed in the future. This is referred to as the human resource demand. Two basic approaches for estimating human resource demand are qualitative and quantitative methods. Two quantitative techniques for estimating human resource demand are ratio analysis and regression analysis. Ratio analysis involves comparing the number of employees to some index of work load. If your organisation was planningitsfuturetraininganddevelopment(T&D)staffingdemandinfiveyears,youcouldestimatethenumberofemployeeslikelytobeemployedbythecompanyinfiveyears.Andthenusethisratioodeterminethenumberof T&D employees needed in given years.


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Regressionanalysisdependsonfactorsorpredictorsthatinfluencethedemandforemployees,suchasrevenues,degreeof automation etc. Information on these predictors from past years, as well as the number of workers employees in eachoftheseyearsisusedtocreateanequationorformula.Theorganisationcanthenenterexpectedfiguresforthepredictors, such as revenues and degree of automation into the formula to attain an estimated number of employees neededinfutureyears.Regressionanalysisismorerefinedthanratioanalysisandideallyleadstomoreprecisepredictions of employee demand. Although both procedures are extensively used, they have their weaknesses. A major weakness is that the factors that are related to workforce size may not be appropriate factors in future years.

The most common qualitative tool for estimating the demand for employees is the bottom-up forecast where department managers make estimates of future human resource demands based on issues, such as new positions needed,positionstobeeliminatedornotfilled,expectedovertimehourstobeworkedbytemporary,part-timeorindependent contractor employees and expected changes in workload by department. Just like other techniques, bottom-up forecasting has its disadvantages. For example, line managers may overrate the demand in order to ensure thattheydon’tfindthemselvesunderstaffed/short-staffed.

1.11 Implementing HR Programme to address Anticipated ProblemsIn this step the organisation ought to determine the gaps between future capabilities and future needs and then utilise the crucial human resource programmes to evade the problems arising from these gaps.In employing a new human resource programme, following basic steps are suggested to attain employee acceptance.

1.11.1 Communicate Need for the ProgrammeEmployees must be informed about the necessary changes to be brought about and they must also be explained why a certain programme is required. It is imperative to explain exactly why the change is needed.

1.11.2 Explain the ProgrammeManagement must explain accurately and clearly what the programme is, how it will be implemented and what its subsequent effects that it will have on other practices and programmes.

1.11.3 Explain what is Expected of the EmployeesThe management must clarify to the employees as to what is exactly expected out of them and how the behaviours of employees are expected to change as a result of the new programme system. For example, implementation of a new pay for performance system may also redirect employee activities.

1.11.4 Establish Feedback MechanismsNo matter how carefully planned and implemented virtually any new policy or practice is likely to pose questions and problems. It is crucial, therefore, for mechanisms to be established to resolve and clear out problems and answer doubts and concerns that crop up. Such mechanisms may comprise of a telephone hotline, ongoing survey programme as well as a dispute resolution policy.

Finally, utility analysis is a comparatively current approach to choosing which (if any) human resource programmes should be implemented. Utility analysis and related approaches such as human resource accounting, take into considerationthefinancialbenefitsversusthecostsofanyhumanresourceprogrammeandattempttobasechoiceof a programme on its rupee value of the organisation. Using such techniques organisations can establish the best way to invest money in employees.

1.12 The role of HRP professionalsHRP professionals have to carry out the following roles that may be divided into three categories:

Administrative role•Managing the organisational resources �Employees’ welfare activities. �

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Strategic role•Formulating HR strategies �Managing relationships with managers. �

Specialised role•Collecting and analysing data �Designing and applying forecasting systems �Managing career development. �

These roles are neither inevitably found in every HRP work nor they are evenly considered in time allocation. Many combinationsofrolesareprobablewithdifferentfocusesbasedonsituationsoftheorganisation.Thefirsttworolesmanaging relationships with managers and for altering strategies are weighed evenly. The activities in these areas areequallysignificanttoHRPbecauseoftheimpliedpurposesofanticipatingandimplementingchangeintheorganisation.ThestrategicrolesarecriticaltotheHRprofessionals’efficiency.Theseskillsareverycomplextodevelop when compared to administrative skills.

The administrative aspects of the work are represented in managing the staff function of HRP and in managing employee welfare activities. These aspects are often seen as additional to other aspects and demand a lot of consideration. The residual three roles symbolise specialised functions performed. Primary attention is given to a arrangement of three categories of activities – collecting and analysing data, designing and applying forecasting systems and managing career development. These activities are latest to the HR function in many organisations, and are strongly linked with the mission of anticipating and managing change. Consequently, they are viewed as fundamental roles of HRP professionals.

1.12.1 Impact of HRPHRP itself is the practice of determining human resources needs in the future and of examining responses to these needs.HRPlinksacompany’sbusinessplansandbroadobjectiveswiththedefiniteprogrammesandotherHRMactivities.OrganisationsneedtolearntoforecastHRneedsmoreefficiently.Morelogical/analyticaltechniques,determined by strategic planning are important. Organisations must learn to handle employee performance more effectively.Althoughperformancemeasurementisintricateandill-defined,yetitissignificanttoeffectivemanagementforthisveryreason.Organisationsmustalsolearntomanagecareersoftheiremployeeswithgreaterefficiency.

1.12.2 Impact of Technology on HRPIn order to manage the prevailing competition, organisations have to ensure on:

Producinggoodsandservicesmoreefficientlyandeconomically.•Innovating product and processes so as to enhance competitive advantages. •

Progress in computer technology has offered organisations new opportunities to improve and reorganise/restructure their processes. Computer aided design (CAD), and computer aided manufacturing (CAM) reduce human resource involvement and contract the cycle time. Advancement in information technology has reduced efforts necessary in impacting, retrieval, processing, and sharing of data. Accurate and timely information can be made available to different levels of management for decision making. All these changes in technology result in a change in occupational andskillprofile/summaryofmanpower.Differentmanufacturingtechnologieshavedifferentskillsrequiredtodesign,work/operate and maintain the machines and equipment. Also, the same technology can have a different impact on different categories of workers and industries. The actual skill implications of technology change will depend on:

Management policy for deployment of manpower•Attitudes bargaining strength of the union•Ability of manpower to adjust and adopt to the new technology•

According to the ILO, introduction of new technology can affect other aspects of working like workers responsibilities, skill requirements, job-content, physical and mental work load, career prospects and communication and social relationships at workplace. Skills and knowledge are needed for operating and maintaining new technology and participating in pioneering/innovative processes. The manual content of skill tends to reduce for skilled workers


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andofficestaffbutrequirementsformathematicalskillsandabilitytoplanandanticipatefuturesituationstendto increase. The methods, systems and style of management also need changes in line with high skill demands on personnel. A more democratic and decentralised management style is essential to motivate and inspire highly educated and knowledgeable employees.

The current education system of our country is not enough to match the technological needs. The syllabus is outmoded, teachers are not fully familiar with the new technology and there is a shortage of infrastructure amenities. Therefore, companies will have to supply suitable training to add to these skills. Manpower planners should keep in mind this requirement and also the requirement of retraining. There may also be a need for rationalisation of the trade structure because of multi-skilling. For example, traditional and relatively conceived metal trades which date back to 1930shavebeenreplacedbysixbroadlydefinedoccupations.Lathe,mulling,grindingcouldbeclubbedascuttingmechanics, production engineering, machine and systems. Engineering, precision engineering and light engineering couldbeputasindustrialmechanics.Intheofficeframework,wenowrequirepersonswhoarecomputertrainedandalsooperateotherofficeequipmentsuchasfax,andxeroxingmachines–thiswillalsorequirerestructuringofemployees. Changes in work and work design are to be created.

1.12.3 HR ProgrammingOnce an organisation’s personnel and supply have been forecasted, the two must be merged so that vacancies can befilledbythesuitableemployeesattheappropriatetime.HRprogrammingassumesgreaterweightageintheplanning process.

1.12.4 HR Plan ImplementationImplementation refers to converting an HR plan into action. A sequence of action programmes are initiated as a part of HR plan execution. Some such programmes are recruitment, selection and placement, training and development, retraining and redeployment, the retention plan and the redundancies plan.

1.12.5 Control and EvaluationThe HR plan should entail budgets, targets and standards. It should also elucidate responsibilities for implementation and control, and ascertain reporting procedures which will enable achievements to be monitored alongside the plan. These may simply report on the numbers employed against establishment and on the numbers recruited against the recruitment targets. They should also report employment costs against budget, and trends in wastage and employment ratios.

1.13 Barriers to HRPPlannersfacemajorbarrierswhileformulatinganHRP.Someofthesignificantonesareasfollows:

HR practitioners are considered to be experts in handling and managing personnel matters, but are not experts •in managing business.People question the importance of making HR practices futuristic and the role assigned to HR practitioners in •formulation of organisational strategies.HR information often is unsuited with other information used in strategy formulation. Strategic planning efforts •havelongbeenorientedtowardsfinancialforecasting,oftentotheeliminationofothertypesofinformation.Financial forecasting takes priority over HRP.ConflictmayexistbetweenshorttermandlongtermHRneeds.Forexample,therearisesaconflictbetween•the pressure to get the work done on time and long term needs, such as preparing people for assuming greater responsibilities. Many managers are of the faith that HR needs can be met instantly because skills are available in the market as long as wages and salaries are competitive. Therefore, long term plans are not required, short term plans are only needed.There is variance between quantitative and qualitative approaches to HRP. Some people view HRP as a number •game designed to track the stream of people across the department.Non-involvementofoperatingmanagersprovesHRPineffective.HRPisnotfirmlyanHRdepartmentfunction.•Successful planning needs a coordinated attempt on the part of operating managers and HR personnel.

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Today,humanresourceplanningistakenasthewaymanagementcomestoseizetheill-definedandtough-to-solvehuman resource problems facing an organisation. Human resource planning as a process of determining the human resources is required by the organisation to accomplish its goals. Human resource planning also looks at broader concerns relating to the ways in which people are employed and developed in order to improve organisational effectiveness. HRP is a decision making process that unite activities such as identifying and acquiring the right number of people with the proper skills, motivating them to achieve high performance and creating interactive relations amid business objectives are resource planning activities. HRP sets out requirements in both quantitative and qualitative terms. Accurate manpower plan is a vision. A common mistake of many managers is to focus on the organisation’s short term substitution needs. Any human resource plan, if it is to be effective, must be derived from the long term plans and strategies of the organisation. The various approaches to human resource planning under which a number of major issues and trends in today’s work plan that will affect organisation and employees are as follows:

Examine external and internal issues,•Determining future organisations capabilities, •Determining future organisational needs, and •Implementing human resources programmes to address anticipated problems.•

Even though change is occurring very quickly in the work world it is important for both organisations and employees to supervise issues and events constantly and judge their possible effects.


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SummaryHRP is a purposeful strategy for acquisition, improvement and preservation of enterprise’s human resources.•HRPisinfluencedbytechnologicalchangesandotherglobalbusinesspressures.•Human resource planning should be an essential part of business planning.•Human resource planning infers people requirements in terms of stalls and competencies.•Even though neither organisations nor employees can look into the future, making predictions can be quite •useful, even if they are not always accurate.HRP is a sub-system in the total organisational planning.•HRP facilitates the realisation of the company’s objectives for the future and determines appropriate means for •achieving those objectives.HRP is given several names- manpower planning, personnel planning or employment planning.•The need for planning occurs mainly due to the fact that modern organisations have to survive, operate and •grow in highly competitive market economics where change is the prevailing principle.Efficientmanagerscanpredicttheproblemsthatareprobabletooccurandtrytocheckthem.•Managers have to foresee to make the future favourable to the organisation in order to achieve the goals •effectively.Procedures are plans that launch a desired method of managing future activities.•A budget is a statement of predictable results in terms of members.•The planning process is affected by overall organisational objectives and the situation of business.•Demand forecast is the procedure of approximating the future quantity and quality of people required.•Personnel Demand analysis provides the manager with the means of estimating the number and kind of employees •that will be needed.New venture analysis will be valuable when new ventures consider employment planning.•External and internal issues are the factors that impel human resource planning.•Organisational structure refers to how work tasks are assigned, who reports to whom, how communications •and decisions are made etc.Capabilities involve the skill level of employees, productivity rates and number of employees, etc.•Succession planning is akin to replacement planning, except that it is more long term and developmentally •oriented.Ratio analysis involves comparing the number of employees to some index of work load.•Regressionanalysisdependsonfactorsorpredictorsthatinfluencethedemandforemployees,suchasrevenues,•degree of automation etc.The administrative aspects of the work are represented in managing the staff function of HRP and in managing •employee welfare activities.Advancement in information technology has reduced efforts necessary in impacting, retrieval, processing, and •sharing of data.

ReferencesChapter 4 Human Resource Planning.• [Online] Available at: <http://www.oocities.org/hrm4uoft/Chap04.ppt> [Accessed 22 July 2013].Human Resource Planning: Process, Methods, and Techniques.• [Pdf] Available at: <http://www.psnacet.edu.in/courses/MBA/HRM/3.pdf> [Accessed 22 July 2013].nptelhrd, 2010• . Lec-4 Human Resource Planning-I. [Video online] Available at: <https://www.youtube.com/watch?v=wcP976S8DsM> [Accessed 22 July 2013].

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mattalanis, 2012. • Human Resource Planning. [Video online] Available at: https://www.youtube.com/watch?v=L_aiqSRL-j8> [Accessed 22 July 2013].Bhattacharyya, D. K., 2009. • Human Resource Planning. 2nd ed., Excel Books India.Bramham, J., 1994• . Human Resource Planning. 2nd ed., Universities Press.

Recommended ReadingReddy, S. M., 2005• . Human Resource Planning. Discovery Publishing House.Sims, H., • Human Resource Planning. Select Knowledge Limited.Turner, P., 2002. • HR Forecasting and Planning. CIPD Publishing.


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Self Assessment______________isasignificantcorporateassetandperformanceoforganisationsdependsuponthewayitis1. put in use.

Planninga. HRMb. HRPc. HRd.

Human resource planning should be an essential part of ___________planning.2. growtha. skillb. businessc. activityd.

HRP is a ___________in the total organisational planning.3. venturea. sub-systemb. technologyc. demandd.

Which of the following statements is false?4. A common mistake of many managers is to focus on the organisation’s short term substitution needs.a. OrganisationsneedtolearntoforecastHRneedsmoreefficiently.b. Ratioanalysis ismore refined than regressionanalysisand ideally leads tomoreprecisepredictionsofc. employee demand.ConflictmayexistbetweenshorttermandlongtermHRneeds.d.

___________have to foresee to make the future favourable to the organisation in order to achieve the goals 5. effectively.

Managersa. Employeesb. Subordinatesc. Peopled.

The __________process is affected by overall organisational objectives and the situation of business.6. managementa. demandb. growthc. planningd.

___________forecast is the procedure of approximating the future quantity and quality of people required.7. Plana. Demandb. Budgetc. Skilld.

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Which of the following statements is true?8. HR planning assumes greater weightage in the planning process.a. HR programming assumes lesser weightage in the planning process.b. HR planning assumes greater weightage in the programming process.c. HR programming assumes greater weightage in the planning process.d.

Different ___________technologies have different skills required to design, work/operate and maintain the 9. machines and equipment.

HRa. planningb. manufacturingc. programmingd.

Match the following10.

Procedures 1. These are the ends towards which organisational A. activity is aimed.

Budget2. This connects the space/gap between society and the B. company.

Objectives 3. These are plans that launch a desired method of C. managing future activities.

Philosophy4. It may be referred to as a numerical programme.D. 1-C ,2-D ,3-A ,4-Ba. 1-C ,2-B ,3-A ,4-Db. 1-A ,2-B ,3-D ,4-Cc. 1-C ,2-D ,3-B ,4-Ad.


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Chapter II

Process and Functions of Human Resource Planning

Aim


introduce the concept of HRP•

explain preliminaries to review•

explore HR information systems•

Objectives


explicate the process of HRP•

explain manning standards and utilisation•

elucidate HR inventory and analysis•

Learning outcome


analyse the determination of the manpower required and the means of supplying the same•

describe management HR planning•

understand the rationale of HRP•

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2.1 Introduction (The concept and process of HRP)The purpose of human resource planning is to present continuity of efficientmanning for the total businessandoptimumuseofmanpower resources,although thatoptimumutilisationofpeople isgreatly influencedbyorganisation and corporate culture. A manpower planning is concerned with manning in the business, it cannot be a detached activity, but must exist as a part of the planning process for the business itself. The shortage of appropriate manpower can place severe restrictions on the ability of a business to attain its objectives, which underscores both the importance of realistic manpower planning and the need for it to be completely integrated with the overall business planning process.

Human resource planning is a fundamental element of corporate plan and serves the organisational purposes in more ways than one. For instance, it helps organisations to:

capitalise on the strengths of their human resources; •determine recruitment levels; •anticipate redundancies; •determine optimum training levels; •serve as a basis for management development programmes; •cost manpower for new projects; •assist productivity bargaining; •assess future requirements; •study the cost of overheads and value of service functions; and •decide whether certain activities need to be subcontracted.•

Human resourceplanning influences corporate strategyand is in turn influencedby it.TheHRPpracticemayincorporate all the stages shown in Figure 2.1 below. The planning process may not always give exact forecasts, and to be effective it should be a continuous process with provision for control and review.

The manpower plan itself falls into two parts – the determination of the manpower needed to run the business at a series of points in time into the future, and the means of supplying those requirements. This not limited to central or specialist activities but should involve all the managers entirely in the assessment of options. The review process, which brings needs and supply together, is often given inadequate time and attention. This may be because, once all dataarebroughttogether,theresultcanseemdifficultandhardtograsp,butanyreductionincomplexityifachievedonly by ignoring some of the data and taking a partial view, which could decrease the potential for achieving the mostefficientresourcing.Theuseofthecomprehensiveperiodicreviewistoconsideralloftheneedsacrossthebusiness and to match these with the career preferences and development of the people so that a complete pattern of decisions can be formulated for the resourcing actions projected over the months ahead. This review provides a base for preliminary decisions for all following actions regarding people. There may be sound reasons for a consequent change of decision, but then the options and alternatives, which were considered in the review, provide a starting point for the fresh assessment. If some new requirement appears, the considerations noted in the original assessment shouldhelpdefinetheupdatedandrestructuredoptionspromptly,andtheimplicationsofalternativeactions


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PHA ISE

PHA IISE

PHA IIISE

s

s

s

s s s

The HRP Process

Company Objectives & Strategic Plans

Market Forecast Production Objectives/process Capital/financial plans

Time horizon (Short/long term)

Human Resource Estimating Human Human ResourceDemand Forecast Resource InventoryN Number Requirements based onO Objectives & topR Category management approval

ylppuS ecruoseR namuHMtsaceroFsllikSS

Action Plans

l R ecruitmentl R etrainingl Redundancyl Productivityl Retention

Monitoring and Control

Fig. 2.1 The HRP process(Source: Personnel Management and Human Resource by C.S. Venkat Ratnam and B.K. Srivastava, Tata

McGraw Hill Publishing Co. Ltd. New Delhi, p. 57)

In the review process itself, the management task is to balance the many competing and sometimes contradictory elements. Some examples might be:

conflictingdemands for available research anddevelopment resources at peaksof activity,with an excess•supply available;imbalance of skills emerging as technology alters the product range; and•uncertain timing of developments, which affects the timing of deployments.•

These reviews cannot anticipate situations which develop at short notice, but should take into account the call forflexibilitytotacklethemanpowerimplicationsofeventssuchasintendedfutureacquisitions,newbusinessopportunities not allowed for, in plans or retention actions needed to evade the loss of key individuals which might spoil establishment plans. The review process may be viewed as the master programme which amalgamates resourcing activities with business planning at an operational level to make certain that organisation structures and the preparation of manpower resources are coordinated with the manpower requirements essential to attain business objectives and respond to a changing and perhaps an unfriendly setting. In parallel, the process should optimise the utilisation and growth of the human resources available. The stress in most reviews may be on the short-term (onetotwoyear)actions,buttheremustbealongerterm(threetofiveorfivetotenyear)viewpoint–mainlyformanagement continuity, which is a unique section of the same process – as the lead time for supply can need this notice.

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Meaningful manpower plans are possible only if the evaluation process brings together all of the applicable information atregulartimegapsandusesthesedatatore-examine,ateverylevel,thesignificanceandrelevanceofpresentandplanned future organisations and the competencies which will be required against those which are available. Outputs from each review should comprise of detailed decisions on future organisation changes and projected manpower deployments for a period through two to three months after the next scheduled review; outline decisions on longer termorganisationchanges,deploymentsandculturechangeplans;plusconfirmationthatbusinessrequirementscanbesufficientlyresourced(ornot).

All manpower supply plans and actions should branch from this process and should include provision for continuous re-evaluation to discover newer problems, to respond to new or changed needs, and then to execute actions or examine progress towards action. This is basically the means of driving the process of effective resourcing within the business and involves management at every level in a system of associated decisions and action.

2.2 Preliminaries to ReviewReviews need sound foundation and preparatory work and all-inclusive personnel records, which give precise and objective data on all employees. We can’t make judgments on the supply of particular skills unless we have adequate data on the skills possessed by present employees. Building up full records requires both a useful system and determination to ensure the data are complete, up-to-date and correct. Also, the information must be in a structure that facilitates uncomplicated access during a review.

Personnel records can be seen plainly as raw data and their contribution to reviews may come more from analysis oftheoverallinventoryofpersonnel.Anyerrorsinthatinventory,identifiedbeforethereviewbegins,presentpartof the review plan. For example, heavy loss rates for a key employee group can be analysed cautiously in advance, so thatpartof theactionagreedin thereview,addresses the identifiedproblem.Or,anincreasinglyworseningdistortionoftheageprofileofacategorymayneedtobetackled.

Analysesofthemanpowerinventoryandofflowscanascertainwhetherproblemsaredevelopingwhicharelikelyto affect required manning levels, and should play key part in preparing the agendas for reviews. Equally, as other agenda items appear, analyses may present prospective solutions.

2.3 Manning Standards and UtilisationThe whole manpower planning process depends a great deal on the base of manning standards. This will begin with what exists and what should be, and take in all of those factors which will change existing standards, including by how much and when. Without some measures of this kind, meaningful planning is very complex. Many organisations beginwithwhatexistsnowandfilterthepositionastheyrecognisetheseparateforecast-ablecategories,thebasesfor evaluating standards and the rates of change.

Manager,supervisorandemployeeassociationandinterestisneededtoestablishstandardsofallsorts;thefirst-hand measures they have of the utilisation of people are basic factors in planning forward needs and consequent implementation and control. Preferably, manning standards should be developed from analysis of indispensable work requirements, with some form of productivity measurement wherever likely.

Measurementisbynomeanslimitedtodirectmanufacturingoperations–itcanalsobeappliedtomanyofficesorsupporttasks.Theplacewherelocalattitudesormanagementstylemakeclear-cutmeasurementdifficult,existingdata in the hands of supervisors and managers can provide useful standards which will encourage supervisors to improve their own human resources utilisation, thereby improving manpower productivity.

Wherever this type of analysis is carried out, opportunities should be sought to streamline, restructure and enhance jobs and to match people’s abilities to job demand, thereby raising the degree of job satisfaction. With this comes, lesser manpower loss rates, lower absenteeism and tighter manning standards generally.


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For all this, existing standards have an inactivity which we must try to conquer. If we aspire to improve the use of peopleinpartnershipwithsubordinatesupervisorsandmanagers,wemayfindthesecretofdrasticimprovementinoverall manning quality as well as numbers. This is an area for experimentation to determine what works in your environment.

Manpower requirement planning follows on from the establishment of the main assumptions in the business plan. Once we know the level of sales volumes and mix, the manufacturing schedules required, the research and development programmes, etc., we are well on the way to establishing the matching manpower requirements. The plans should include built-in assumptions about the organisation structures to be used, and their effects on the levels of manpower required.

Plansshouldbesetoutwithschedulesofassociatedmanpowerrequirements,givingspecificcategories,skillsandlevels for every task. This feature will be required as a preliminary point when the questions of supply planning are tackled. Where appropriate, requirement plans should be based on manning standards connected with work demand factors to aid adjustment as volumes or systems change.

2.4 HR Information SystemsModernmanagementdependsonhavingwide-rangingdataformakingdecisions.Foranysystem,specificationof required inputs and outputs is vital. In building up the manpower database, full coverage of conventional personnel records is required, and it is increasingly feasible to cover sophisticated and complicated elements, such as competencies required for effectual performance of a job, and the competencies possessed by individuals. Data on absenteeism and overtime are also a part of the system.

2.5 HR Inventory and AnalysisInformationaboutemployees,theirskillsandtheirrespectiveefficienciesarejustsomeofthemanyaspectswhichwe need to know about. A great deal of the analysis should come from the information system, but the existing inventory is varying all the time with recruitment and losses, promotions and transfers. Assessing the rate and form of change in the inventory is important to questions of manpower supply because, what we cannot supply from within, we must seek out from other sources.

Data of appraisal of performance, estimation of upcoming potential and the use of psychological tests are all part of the information we use to get the answers we need.

2.5.1 FlowsAnalysesofthepatternsorflowsofpeoplethroughpartsoftheorganisationarevaluabletothemanpowerplanner;flowsgivethemajorpartofoursuppliesdataandidentifyingchangesinflowpatternscanpointtolikelydifficulties,suchaswhenanexistingflowpatternbecomesinadequatetomeetavaryingdemand.

Flows tell us about the availability of people who are prepared to move on to their next career stages and also provide information such as the average rates at which individual’s progress through job, and how those rates vary for different types of people in different functions.

2.6 HR Supply PlanningThis is the crux point where we gather all the data we have on our future requirements, and on our present manpower supply and the ways we expect it to change. From this analysis, we observe the future manpower supply set against thedevelopinginventory,detailedbyfunction,categoryandskilllevel.Theseexplainourfuturestaffingneeds,highlight needs to amplify the promotion rates of some categories by concentrated training and development, show retraining and redevelopment needs and discover surplus staff that is likely to become unnecessary. In all these areas, we need action programmes to make sure that we meet our recognised needs. We must be sure that the actions required are taken and are successful. Else, fundamental assumptions on the provision of human resources within the business plan may be adversely affected so that business of objectives are endangered.

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2.7 HR Control and AuditThe philosophy is one of planning in advance, but this calls for basic controls and audits. The logic of controls on all aspects of manning should be clear and apparent. We are dealing with an expensive resource that can be easily misused or underutilised. Controls should be low key, yet silently ensure that we recurrently try to use those resources in the best ways possible, and do not carelessly add additional and non-essential resources. Controls are exercised on current actions and decisions. Consequently, we review results to be sure that objectives and targets have been achieved and that decisions have not been disregarded or ignored. This happens far more than we expect wherethereislittleornoaudit.Inthewholeareaofmanagementdevelopmentinparticular,andacrossthefieldof planning following the review process, ensuring that plans are followed through, is indispensable. If this is not done,thereislittlebenefitfromtheconsiderableuseofprecioustimeinvolved.

2.8 Management HR PlanningAbove a certain level, manpower planning ceases to be a matter of numbers by category, and becomes connected to individual positions and individual incumbents. For the top slice of the company, we are dealing with a mixture of business development, organisation development and individual career development. It must be handled with considerable heed, by impartial and imaginative executives; it must also take into account the employees’ viewpoints and preferences and involve them entirely if it is to be a feasible plan.

2.8.1 Corporate CultureHow a company is managed, its organisation structure, its manning standards and thinking on ‘how we do things aroundhere’arealsodeterminedwithinacorporateculture.Anyimportantchangeinefficiencyisalmostdefinitelygoingtobecultureconnected,butcultureisbothdifficultandslowtochange.

Ifthebusinessdemandsachangeofspeedorefficiency,oradifferentwayofdoingthings,itisnotgoingtocomeabout exclusively from planning changes in manpower standards or utilisation. There will be a requirement for some major action to change what people accept as norms for many aspects of their work behaviour, which may well result in a severe interruption in current manpower and organisation.

2.8.2 Periodic Full ReviewsThe way reviews are carried out is probable to differ a lot from one enterprise to the next, but the principles should be more consistent. The most critical is involvement. All of management should participate, with the lowest levels contributingtheirpartsfirstandprogressivereviewsformingareverseflowupthroughtheorganisationstructure,concluding with a review of the overall manpower plan and the management continuity point at the top. At the bottom end, every manager should discuss requirements of and deployments with his direct subordinates. Then he can arrange for the review with his boss. A rational target time per level might be three weeks, if planned early into business diaries. As reviews progress up the arrangement, they should concentrate on the continuous two or three levels in the organisation, progressively dropping off the lower levels as the review progress upwards. However, issues thought to be of concern at higher levels will be carried ahead, such as skills’ shortages which may have an influenceonthebusiness.

The supporting paper work will differ, with much being prepared as operational notes by the participating managers, but it is reasonable to accumulate and maintain some basic record of the discussions and agreements to facilitate progress to be monitored afterward, or as the starting point for fresh consideration if an unanticipated development occurs. There might be sections in the notes for:

business and environmental changes;•organisation and manning reviews; and•human resource action plans.•

Thefirstsectionshouldrecordthebusinesssituationandassumptionsonwhichthereviewwasbased.Thenotesmight comprise of a concise appraisal of actual business progress against the business plan, and changes in the environment which vary from the assumptions in the related environmental scenario, followed by updated views and an evaluation of the implications for human resource management.


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The organisation and manning plans section should focus on: the immediate organisation structure, including any freshthinkingonitsevolution;thefillingofallseniorpositionsateachreviewlevel,bothcurrentlyandinthefuture,includingelementarydevelopment;andreviewsofmanningspecifications,standardsandlevels,andhowthey may change. It will be useful if all the main assumptions made in the plan are recorded, so that any need has a solid base on which to build. The third section, covering human resource action plans will involve orientation to major human resource strategies associated with the achievability of business objectives. There should be notes on development against the milestones in existing action plans, plus details any new plans triggered by new business or environmental developments, and the associated human resource implications.

2.8.3 FrequencyThe frequency of this process should be determined by necessity. One company in a swiftly changing high-technology sector runs through it at quarterly intervals with strong line management support for what they see as rational disciplinewhichkeepstheirorganisationandmanpowerutilisationfinelytuned.Inlessdynamicindustries,amajoryearly review plus a less formal, but ongoing, midyear update may be enough.

The force to carry through the review process must come from the top and from the line, which must recognise its value to themselves and to the business or they will not spend the time doing it. The human resource function may need to present some of the drive plus some strong supporting back up. Reviews contend for management time andmustexhibittheircontributiontobusinessdevelopmentandprofitability.Localmanagementisusuallyhelpfulif the process is working properly and they can see value for their efforts but, even then, resistance to allocating sufficienttimemayoccurasaresultofoperationaldemands.Necessaryactionstriggeredbythesereviews,suchasmanpower movement between divisions, may be complex to organise without the association of higher management. Usually, these moves need to capitalise on knowledge of the immediate business and be local to those business areas the individuals concerned know well. Movement should normally be within functional disciplines, so that the fast learningisconfinedtothenewbusinessarea.

2.9 Application to Individual DecisionsThe periodic in-depth manpower review creates a situation or framework of preliminary decisions. Following this,therewillbemanyday-to-dayactionstotakebeforegainingafinalsummaryandemployingthedecisions.For example, a chain of individual moves and appointments may be planned to follow a retirement. These should be under inspection as the implementation time approaches and they would normally be implemented in a simple fashion. However, one of the links in a chain may be unsuccessful. Someone may resign, performance may waver, or other events may change the situation, causing the plan to be reshaped. If conditions change, the apparent starting point for fresh consideration should be the notes from the preceding review supporting the original intent, which may record the options and contingencies considered. It is reasonable to go over this ground in detail, starting from the original review. It should not be satisfactory to take a fresh ad hoc decision, which is quite unconnected to the careful and wider ranging considerations, which took place in the review process. Actions involving changes from plans should necessitate the discipline of reference back to the comprehensive discussion.

Forexample,adecisiontosendsomeoneonatrainingcourseshouldfitintohislongertermdevelopmentplans;secondments to meet an emergency are doubtful to have been planned far ahead, but should match a need to expand experience; a change to a career plan may have been projected on the basis of one event, but should be viewed against the full consideration and track record; and so on. Perhaps the gravest unscheduled actions take place when a key person resigns, or hen an unplanned business opportunity requires an urgent appointment. (The review process may have covered these possibilities and noted contingency actions but, more often, the necessary response will upset the plan). One such appointment was followed by a chain of seven other changes down the line, severely: disturbing an entire plan. If that happens, a fresh examination of that sector of the business becomes a prerequisite. Indeed,anyeventwhichpromptsasignificantvolumeofunscheduleddeploymentchangesshouldbefollowedby a full review to assess the extent of its weakness caused and the actions which can be taken to strengthen the reserves of management.

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Wins for Employees Wins for Enterprise

Competitivepayandbenefitsplans.1. Appropriate organisation structure and people to 1. face challenges and meet corporate objectives, both short and long term.

Career development and opportunities for 2. growth.

Development of internal resources, leading to 2. stability and culture building.

Reduced fear of redundancy.3. Improved motivation and morale of employees, 3. leading to improved performance.

Training and development, leading to 4. continued marketability. Productivity gains, leading to cost reduction.4.

Continuity of employment due to 5. organisation’s ability to retain workforce.

Improved customer satisfaction, leading to 5. improvement in business.

Fuller realisation of potential, leading to job 6. satisfaction.

Reduction in hiring and training costs due to 6. the improved ability to retain employees and developmentofinternalresourcestofillfuturevacancies.

Conducive work culture and management 7. style leading to satisfaction.

Table 1.1 Human resource planning- a win-win process

Human resource planning is a process of human resource development. The intention of human resource planning is toprovidecontinuityofefficientmanningforthetotalbusinessandoptimumuseofmanpowerresources,althoughthatoptimumutilisationofpeopleisgreatlyinfluencedbyorganisationandcorporateculture.

Human resource planning constitutes an essential element of corporate plan and serves the organisational purposes inseveralways.Humanresourceplanninginfluencescorporatestrategyandisinturninfluencedbyit.Theplanningprocess may not always give precise forecasts and to be effective it should be a continuous process with provision for control and review. The review process, which brings needs and supply together, is frequently given inadequate time and attention. The function of the comprehensive periodic review is to consider all of the needs across the business and to match these with the career preferences and development of the people. The suitable requirement plansshouldbebasedonmanningstandardsassociatedwithworkdemandfactors to facilitatemodificationasvolumesorsystemschange.ModernmanagementdependsonHRinformationsystem,HRinventoryandflowofpeople through parts of the organisation. Flows tell us about the availability of people who are ready to advance to their next career stages and also provide information such as the average rates at which individuals’ progress through jobs, and how those rates differ for diverse types of people in different functions.


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SummaryA manpower planning is concerned with manning in the business, it cannot be a detached activity, but must •exist as a part of the planning process for the business itself.Human resource planning is a fundamental element of corporate plan and serves the organisational purposes •in more ways than one.Humanresourceplanninginfluencescorporatestrategyandisinturninfluencedbyit.•The manpower plan itself falls into two parts – the determination of the manpower needed to run the business •at a series of points in time into the future, and the means of supplying those requirements.The review process, which brings needs and supply together, is often given inadequate time and attention.•Meaningful manpower plans are possible only if the evaluation process brings together all of the applicable •informationatregulartimegapsandusesthesedatatore-examine,ateverylevel,thesignificanceandrelevanceof present and planned future organisations and the competencies which will be required against those which are available.Reviews need sound foundation and preparatory work and all-inclusive personnel records, which give precise •and objective data on all employees.The whole manpower planning process depends a great deal on the base of manning standards.•Plansshouldbesetoutwithschedulesofassociatedmanpowerrequirements,givingspecificcategories,skills•and levels for every task.Flows tell us about the availability of people who are prepared to move on to their next career stages and also •provide information such as the average rates at which individual’s progress through job, and how those rates vary for different types of people in different functions.Actions involving changes from plans should necessitate the discipline of reference back to the comprehensive •discussion.The periodic in-depth manpower review creates a situation or framework of preliminary decisions.•

ReferencesTalentManagement, Talent Identification, SuccessionPlanning andTalentManageme• nt. [Video online] Available at: <https://www.youtube.com/watch?v=_m7tRotajdo&list=PLBAA758348D9DE2A9> [Accessed 22 July 2013].B2Bwhiteboard, 2012. • Humanresourceplanning-defined. [Video online] Available at: <https://www.youtube.com/watch?v=tXLk8Q1OklA> [Accessed 22 July 2013].Walker, J.W. 1980. • Human Resource Planning. McGraw-Hill, New York.Human Resource Planning.• [Online] Available at: <https://www.boundless.com/management/human-resource-management--2/purpose-of-human-resource-management/human-resource-planning/> [Accessed 22 July 2013].Human Resource Planning Process.• [Online] Available at: <http://smallbusiness.chron.com/human-resource-planning-process-4932.html> [Accessed 22 July 2013].Reilly, P., 1996. • Human resource planning: an introduction. Institute for Employment Studies.

Recommended ReadingStainer, Gereth, 1971. • Manpower Planning: The Management of Human Resource. Heinemann, London.Suri, G.K., 1988. Human • Resource Development and Productivity: New Perspectives. National Productivity Council.Bramham, J. 1990. • PracticalStaffingPlanning. IPM, London.

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Self Assessment__________ records can be seen plainly as raw data and their contribution to reviews may come more from 1. analysis of the overall inventory of personnel.

Informationa. Competencyb. Individualc. Personneld.

The whole _________planning process depends a great deal on the base of manning standards.2. organisationala. humanb. manpowerc. careerd.

Humanresourceplanninginfluences___________strategyandisinturninfluencedbyit.3. corporatea. skillb. inventoryc. industriald.

_________involving changes from plans should necessitate the discipline of reference back to the comprehensive 4. discussion.

Skillsa. Actionsb. Managersc. Culturesd.

__________are exercised on current actions and decisions.5. Inventoriesa. Actionsb. Plansc. Controlsd.

Manpower requirement planning follows on from the establishment of the main assumptions in the ___________6. plan.

businessa. controlb. reviewc. datad.

Which of the following statements is false?7. Measurement is by no means limited to direct manufacturing operations.a. Modern management depends on having wide-ranging data for making decisions.b. The planning process always gives exact forecasts.c. Building up full records requires both a useful system and determination to ensure the data are complete, d. up-to-date and correct.


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________of appraisal of performance, estimation of upcoming potential and the use of psychological tests are 8. all part of the information we use to get the answers we need.

Recorda. Datab. Optionsc. Projectsd.

Which of the following statements is true?9. In less dynamic industries, a major yearly review plus a more formal, but ongoing, midyear update may be a. enough.In more dynamic industries, a major yearly review plus a less formal, but ongoing, midyear update may be b. enough.In less dynamic industries, a minor yearly review plus a less formal, but ongoing, midyear update may be c. enough.In less dynamic industries, a major yearly review plus a less formal, but ongoing, midyear update may be d. enough.


Reviews 1. Wins for Employees.A.

Productivity gains, leading to cost 2. reduction

Tell us about the availability of people who are ready to B. advance to their next career stages.

Flows 3. These need sound foundation and preparatory work and C. all-inclusive personnel records.

Reduced fear of redundancy4. Wins for Enterprise.D.

1-A ,2-D ,3-B ,4-Ca. 1-D ,2-B ,3-C ,4-Ab. 1-C ,2-D ,3-B ,4-Ac. 1-C ,2-A ,3-B ,4-Dd.

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Chapter III

Methods and Techniques of Demand Management

Aim


introduce the concept of HR forecasting•

explain the factors determining the demand for employees•

explore managerial dilemma•

Objectives


explicate the issues in demand forecasting•

enlist the ways in which expansion plans are executed•

elucidatethecreationofastaffingplan•

Learning outcome


analyse the HR forecasting techniques•

identify factors contributing to demand forecasting•

understand the importance of HR forecasting•


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3.1 IntroductionIn this unit, the focus is on understanding the business shifts in a dynamic environment and on the basis of such shifts, preparation of estimates of human resource needs. An understanding of the trends and an estimation of the needs of an enterprise present probable clues to planners about the future, and thereby enables them to take necessary steps tobridgethegapbetweendemandandsupply.Inthedeficiencyofanysystematicworkinthisarea,anorganisationmay face surprises and therefore be incapable of facing challenges. The absence of the right resources at the right time may exclude the success of corporate plans, and also lead to losses because of the organisations’ incapability to cash in on opportunities.

Forecastingofdemandofhumanresourceneedsisthefirstandforemostcentralstepinanyhumanresourceplanningprocess.Thisstepresultsinanassessmentofstaffingrequirementofanorganisation,forboththeshortandlongterm and is, therefore, the basis for the planning activity. Here, both the quantitative as well as qualitative aspects of human resource needs are dealt with. It is important to note at this point that demand forecasting is not a very accurate exercise over a long-time period. For short range planning of less than a year, a moderately precise forecast is maybe possible. No processes or techniques exist that can take into account all the parameters and circumstances required for accurate long-term evaluation of manpower needs. Dynamic business circumstances, quickly changing technologiesand their influenceonproductsandmethodsofproduction,politicalandsocialchangesandeverincreasing competition keep varying the set of circumstances assumed at the time to forecast. Fig. 3.1 illustrates the set of assumptions that a human resource planner has to make at the time of demand estimation.

Inthe1980s,becauseofinternationaleconomiccompetition,staffingplanninghadtoreorientitscontributiontoorganisations,focusingmoreondecreasingstaffinglevelsandbuildinginacapabilityforflexibilityandchange.The1987reportoftheStaffingServicesCommission(UK)emphasized‘competence,commitmentandthecapacitytochange’anddrewlittleonthetraditionsofstaffingplanning.Morepractically,thus,thestateofcontemporarystaffingplanning will have restructured itself and reorient its own values and approach to the regulation of employment. In a1990study,ithasbeenreportedthatorganisations‘preferneithertousetheterm“staffing”nortoreturntothelargeanddetailedplanningdocumentsproducedbyheadofficesadecadeago’.Manyorganisationsareplacingtheaccountabilityforstaffingplanningwithproductionlinemanagerswhilemaintainingstrategicholdanddirectionatcorporatelevelasagainsttheearlierpracticeofcentralisedandspecialisedstaffingplanning.Youwillappreciate,no doubt, that this is consistent with some of the hypothetical moves towards human resource management in general.

Nowletuslookatthecategorisation,HRPlanning.Conventionalpracticesaregivingwaytoflexiblestaffinguse,novel forms and contracts of employment, together with innovative approaches and succession planning. Does the term “HR Planning” capture the essence of contemporary and HR Planning? Bennison and Casson (1984) do not seem to think so. According to them, planning ‘belongs to the world of calculation, computers and big bureaucracies’.

3.2 Human Resource ForecastingWhatisdefiniteistheuncertaintyofthefuture.Astimepasses,theworkingenvironmentchangesinternallyaswellexternally. Internal changes in the organisational environment involve product mix and capacity utilisation, acquisition and mergers, and union-management relations amid many other areas. Changes in the external environment include government regulations, consumerism, and competence levels of employees, among a multitude of other factors. HR plansrelygreatlyonforecasts,expectations,andanticipationoffutureevents,towhichtherequirementsofstaffingin terms of quality and quantity are directly connected. Uncertainty adds complication of forecasting. However, changedoesnotpreventtheneedforstaffingplanning,thoughthisisthedisagreementraisedbythosewhoresisttheconcept.Wherethefuturesarecertain,therewouldbenoneedtoplan.Justificationsforplanningarethreefold:

Planning involves developing alternatives and contingency plans.•As long as survival and success are the main objectives of any enterprise, the uncertainty future is no pretext •for not trying.Sciencehasdevelopedalotofknowledgefortheuseofmankind.Scientificmanagementhasdevelopedoperations•research techniques and statistical methods to forecast the future with precision and consistency.

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3.3 Forecasting Demand for EmployeesThe factors that forecast the demand for employees are explained as under.

3.3.1 Economic Factors Business being an economic activity, forecasts must regard economic aspects like per capita income, employees’ expectationsofwagesandsalaries,costandpriceofrawmaterials,inflationrate,etc.Fiscalpoliciesandliberalisationoftradewillalsoinfluencerequirements.

3.3.2 Social FactorsHere, we consider the expectations of existing and potential employees on wages, working condition and government regulationsandfuturetrendsinpoliticalinfluencesandpublicopinions.

3.3.3 Demographic FactorsDecisivelyinfluentialuponfuturerequirements,theseincludeavailabilityofyouth,trainingfacilities,womenintheactive labour force, sex ratio, facilities for professional education, income level, education/literacy, etc.

3.3.4 CompetitionCompetitors’strategies,includingadvertising,qualityofproduct,pricing,anddistributioninfluencefuturestaffingin diverse ways. For example, if we can only maintain our market share by improving the value of our product, we mayhavetoemployproficientR&Dengineerstotackletheproductdesign.

3.3.5 Technological FactorsTechnology has to be stage of the art if company is to survive the competition. Technology, both in terms of quality andextent,towhichitisused,willestablishthecapitalandlabourforcerequirements.Giventhatourfuturestaffingneedsclearlydependonanticipatedtrendsintechnology,‘technologyforecasting’hasbecomeaspecialistfieldincontemporary management.

3.3.6 Growth and Expansion of BusinessFuturegrowthandexpansionplanswillinfluencefuturestaffingrequirements.Growthispossiblethrough:

Productdiversification•Increased production capacity•

Expansion plans are executed through the following:Merger•Acquisition•Joint venture participation•Formation of horizontal and vertical integration•Establishment of national and international value chains.•

Alltheseactivitiesnecessitateadditionalstaffingwithrightqualitiesintherightnumbersattherighttimes.

3.3.7 Management Philosophy/LeadershipTopmanagementeventuallydecideswhatlevelsofstaffingareessential.Thephilosophyofthetopmanagementwillmostlydeterminethepoliciesthatinformdecisionsonfuturestaffingneeds.Inmanydevelopingcountries,thereare‘public-sector enterprises’ and ‘private-sector enterprises’. The public-sector enterprises owned by the government frequently assume a liberal philosophy of employing labour, leading to enterprises that are overstaffed. Managers in the private sector, whose philosophies are more determined by economic and entrepreneurial considerations than by social policy, attempt to employ the optimum number of employees.


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3.3.8 Innovative ManagementAs competition increases with globalisation and liberalisation of trade, management needs to be innovative to stay afloatandsupportcompetitiveadvantage.Emotionallyintelligentworkplaces,continuousimprovement,relationshipmanagement, customer, loyalty, economics of variety, etc., are the innovations in management that need to be adopted.Futurestaffingneedswillbeinfluencedbytheseinnovativepractices.

3.4 Managerial DilemmaQuestions that constantly confront the managers are: why should I worry about future needs when the future is uncertain? Why should I spend my time in human resource planning when I know for sure that the forecast made today will not survive over the long term? Examples of giants like IBM and Digital which had to lay off or retrench several thousand employees appear large in the minds of planners.

Fig. 3.1 Assumptions at the time of demand forecasting

The answer to these and such other questions will, however, depend on what one is looking for in human resource forecasting? Are we looking for an accurate number or for some trends that will enable us to take proactive steps? If one is looking for precise numbers in the long term, no existing human resource-planning model will help. One can, nevertheless, look at the trends which do present important data and can help to prepare an organisation face probable changes in a practical manner. Another issue, which often confronts managers, is the segregation between the annual budgeting exercise and human resource planning. In the annual budgeting exercise, managers are likely tolargelyspecifythenumberofemployeesrequiredduringtheyear.Suchinputfacilitatesthefinancegrouptoapproximate employee costs for inclusion in the budget. In the larger, long term background of the business of such anexerciseisnotonlyinsufficientbutisalsoinaccurateandimpractical.Themanagersgenerallyhaveatendencyto overrate their departmental needs during such an exercise. The reasons for such a tendency could be credited to the following factors either singularly or collectively:

Many managers believe that their superiors will cut down the budgets in any case. Such a reduction is assumed to •be a normal feature in order to establish the locus of power. It is, therefore, considered prudent to over-estimate, sothataftertheaxefallsontheestimates,thefinalbudgetwillhopefullybenearrealistic.Absence of forecasting skills may also lead to managers playing safe games. Excess forecasting, if approved •(in case of expenses and manpower deployment) cannot cause any harm to individual performance, and in fact, could be very helpful. Managing expenses and deploying staff at levels lower than those indicated in the budget, while producing desired results, may lead to a pat on the back of the manager.

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In those organisations where job evaluation has some connection to the span of control and the number of •people in the department, the tendency to overstaff does exist. If a greater number of people are budgeted and approved, the chances of the managerial job getting reviewed for higher level of scoping is tremendous. This leadsnotonlytoover-staffing,butalsotoharshbattlesanddebatesonstaffingwithunknownagendasintheminds of the warring section.The human tendency to manage a large number of people in order to satisfy the “power need” can lead to over-•budgetingandsurplusstaffinginanenterprise.

An annual budgeting exercise which is the only form of human resource planning in many organisations sometimes fails to regard the qualitative aspects of manpower requirements and overlooks the long-term needs of the enterprise. Annualbudgetingprogrammesgetfocusedonannualrevenue,costs,cashflowsandannualprofitability.Thisannualnumber crunching activity or the activity of counting heads, popularly known as “headcounts” is intended at projecting and controlling employee costs rather than at the advanced aspects of the quality of workforce, its deployment, long term utility, long-term adequacy, ability to retain and hire etc. In most enterprises, managers spend a lot of their valuabletimeinnegotiating,demandingandworryingaboutnumbersratherthanthefiner,long-termobjectives.

Enterprises are often seen approving 0.5 headcount for certain departments and in some cases, they go to unreasonable levels of approving 0.25 headcount for a given work, with a promise to review in future. In this numbers game, the issue of productivity improvement opportunities, employee development issues, training etc., get side-tracked. The enterprise’s inability or refusal to focus beyond the short term in turn leads to non-recognition of the long term demandsofthebusiness,shortageoftherightresources,finallyresultingincompromises“byre-deploymentorbyhiring of talents which do necessarily meet requirements”. One can notice several instances of wrong per holding important positions in various enterprises. A conventional estimate that at least 8 to 10 per cent of the positions in any organisation are staffed by the wrong persons makes them a drag on the organisation. One of the reasons for such a disparity is lack of planning.

3.5 Issues in Demand ForecastingBefore discussing probable techniques of human resource demand estimation, it is worth examining the related factorsthatinfluencetheprocess.Inthissection,somesuchfactorsarediscussed,withaviewtopromptreaderstoconsiderothersimilarissuesthatmayinfluencetheirownenterprises.

3.5.1 Social FactorsIt is a familiar experience that a number of well-conceived projects either do not take off or get delayed due to social pressures. For example, a large-scale petrochemical project might get delayed or even cancelled due to the pressures created by environmental and other reasons. In such an event, the human resource demand forecasts madebytheplannerswillexperiencesignificantchanges.Delaysresultincostappreciation,changesintechnologyto contain the needs/sentiments of society, changes in the location of the project etc. If cautious and conservative hiring is not done by the enterprise, when such major changes occur, there is a possibility that the enterprise will be burdened with excess staff right at the start of the project. A change of location or of technology may result in the non-availability of planned resources and therefore further postpone the activities. More examples can be seen in the form of product formulations, which are undesirable because of religious or cultural reasons, such as the unacceptability in the Indian market of food products using fat extracted from beef.

3.5.2 Technological FactorsSwift changes in technology many at times unfavorably affect human resources forecasts. From the time a project is visualised to the time it is implemented, sizeable time lag may occur during which, changes in technology may make the entire project unviable. Businesses then have to quickly catch up with new technology in order that the losses are minimised. Several examples of this can be found in the electronic industry.

3.5.3 Political FactorsUnanticipated political factors might make considerable impact on the business plans of enterprises. This is true particularly for those organisations which depend typically only on international markets either for the sourcing


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of their raw materials or for selling of their products and services. Several examples can be seen in the recent past. Indian enterprises were reliant on the export market to the former USSR. With the changed political situation, the market suddenly vanished, compelling some enterprises to either close or restructure their business. The Gulf War likewise, made a major impact on some enterprises, which were dependent on the construction business in that part of the world.

3.5.4 Economic FactorsEconomic factors frequently result in several planned activities being forced to experience considerable change. Recent examples are found in India, with economic reforms being introduced in the early nineties. The traditional concept of manufacturing everything indigenously, even if it meant just assemble at the component level had to undergo substantial change and several organisations that had set up or were in the process of setting up manufacturing activities unexpectedly found local manufacturing an unviable proposal. This resulted in major changes in business strategies and for some enterprises, even the warning of closure.

3.5.5 Demand GenerationBefore dwelling on demand forecasting techniques, it is necessary to scrutinise the reasons for the formation of employee demands. This will help us focusing only on those factors that create demands.

3.5.6 GrowthGrowth, in traditional business, may lead to demand for greater levels of production, sales volumes and services. If all possible productivity techniques are already applied and there is no additional possibility of improvement at that appropriate time, straightforward statistical models discussed in the later part of this chapter can be applied to forecast future manpower needs of an enterprise.

3.5.7 Employee TurnoverEmployee turnover or attrition is another reason for generation of manpower demands in an organisation. While it is essential to look at the trends of employee attrition, it might not be appropriate to simply make an estimate based on the trends. Changing business scenario and environment have to be considered before any assumptions on future turnover of employees can be made. To illustrate this point, in India, till the end of the eighties and before the opening of the Indian economy, a turnover of not more than 5-6 per cent amongst the profession and managerial personnel is steady, well managed organisations could be carefully assumed. This picture, however, changed with the economic reforms, which brought several new multinationals into the country and woke up traditionally managed Indian business houses. Past trends of low turnover have now changed to moderate and might go up still further. Such changes in employee turnover trends vary from profession to profession and skill to skill depending on the demand and supply position.

3.5.8 Technological ShiftsChanges in technology make an impact on an enterprise in more than one ways. This may alter the methods of manufacturing,processesandtechniques,sellingstrategiescouldalsobecomedifferentandintheoffice,automationcould bring about a major change in the nature of work. Such changes may result in a disused and surplus workforce and might also bring about shortages in the new skills required to manage the technology. A technological change in an enterprise does not happen immediately but is always forewarned, over a short or long period of time. Hence, whenever any shift is planned, either on the basis of previous experience with similar technology or on the basis of the experience of other enterprises, a demand forecast can be made of the skills that might soon be in short supply internally. There are several good reasons to conduct demand forecasting. It can help:

Quantify the jobs necessary for producing a given number of goods, or offering a given amount of services; •Determine what staff-mix is desirable in the future;•Assesssuitablestaffinglevelsindifferentpartsoftheorganisationsoastoavoidneedlesscosts;•Prevent shortages of people where and when they are needed most; and •Monitor conformity with legal requirements with regard to reservation of jobs.•

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3.6 Forecasting TechniquesForecastingtechniquesvaryfromsimpletorefinedones.Beforedescribingeachtechnique,itmaybestatedthatorganisations generally follow more than one technique. The techniques are:

Managerial judgment•Ratio-trend analysis•Work study techniques•Delphi technique•Flow models•Others•

3.6.1 Managerial JudgementThistechniqueisverystraightforward.Inthis,managerssittogether,discussandarriveatafigure,whichwouldbethefuturedemandforlabour.Thetechniquemayinvolvea‘bottom-up’ora‘top-down’approach.Inthefirst,line managers present their departmental proposals to top managers who arrive at the company forecasts. In the ‘top-down’ approach, top managers prepare company and departmental forecasts. These forecasts are reviewed with departmental heads and agreed upon. Neither of these approaches is precise – a combination of the two could yield positive results. In the ‘bottom-up’ and ‘top-down’ approaches, departmental heads are provided with extensive guidelines. Armed with such guidelines, and a discussion with the HRP section in the HRM department, departmental managers can arrange forecasts for their respective departments. Simultaneously, top HR managers prepare company forecasts. A committee comprising departmental managers and HR managers will evaluate the two sets of forecasts; arrive at an agreement, which is then presented to top managers for their approval. Needless to say, this technique isusedinsmallerorganisationsorinthosecompanieswheresufficientdatabaseisnotavailable.

3.6.2 Ratio-trend AnalysisThis is the quickest forecasting technique. The technique involves studying past ratios, say, between the number of workers and sales in an organisation and forecasting future ratios, making some allowance for changes in the organisation or its methods.

3.6.3 Work-study TechniqueWork-study techniques can be used when it is possible to relate work measurement to compute the length of operations and the amount of labour required. The starting point in a manufacturing company is the production budget, arranged in terms of volumes of saleable products for the company as a whole, or volumes of output for individual departments. The budgets of productive hours per unit of output are then multiplied by the planned volume of units to be produced to give the total number of planned hours for the period. This is then divided by the number of actual working hours for an individual operator to show the number of operators required. Allowance will have tobemadeforabsenteeismandidletime.Followingisahighlysimplifiedexampleofthisprocedure:

Planned output for next year1. Standard hours per unit2. Planned hours for the year3. Productive hours per man/year (allowing 4. normal overtime, absenteeism and idle time)Number of direct workers required (4/5)5.

20000 units5

1000002000

50

Work-study techniques for direct workers can be combined with ratio-trend analysis to forecast for indirect workers, establishing the ratio between the two categories. The same logic can be extended to any other category of employees.


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3.6.4 Delphi TechniqueThe Delphi technique is a method of forecasting human resource needs. It is a decision making instrument. It has been used in estimating personnel needs from a group of experts, typically managers. The HR experts act as intermediaries, summarisestheassortedresponsesandreportsthefindingsbacktoexperts.Theexpertssurveyagainaftertheygetthis feedback. Summaries and surveys are repeated until the experts opinions start to agree. This agreement reached is the forecasting of the human resource needs.

3.6.5 Flow ModelsFlow models are very often linked with forecasting personnel needs. The simplest one is called the Markov model. In this method, the forecasters will:

Determine the time that should be covered. Shorter lengths of time are generally correct than longer ones. •However, the time horizon depends on the length of the HR plan which, in turn, is determined by the strategic plan of the organisation.Establish categories, also called states, to which employees can be assigned. These categories must not overlap •and must take into account each possible category to which an individual can be assigned. The number of states can neither be too large nor too small.Countannualmovements(alsocalled‘flows’)amongstatesforseveraltimeperiods.Thesestatesaredefinedas•absorbing (gains or losses to the company) or non-absorbing (change in position levels or employment status). Losses include death or disability, absences, resignations and retirements. Gains include hiring, rehiring, transfer and movement by position level.Estimate the probability of transitions from one state to another based on earlier trends. Demand is a function •of replacing those who make a transition. There are alternatives to the simple Markov model. One, called the semi-Markov, takes into account not just the category but also the term of individuals in each category. After all, possibility of movements rises with tenure. Another method is called the Vacancy Model, which predicts probabilities of movement and number of vacancies. While the semi-Markov model helps estimate movement among those whose situations and tenure are similar, the vacancy model produces the best results for an organisation.

Markov analysis is helpful because it makes sense to decision makers. They can easily understand its fundamental assumptions. They are, therefore, likely to accept results. The disadvantages include:

Heavy reliance on past-oriented data, which may not be precise in periods of chaotic change, and •Accuracyinforecastsaboutindividualsissacrificedtoaccomplishaccuracyacrossgroups.•

3.7 Creation of an HR/Staffing PlanAfter going through the techniques employed in HR planning let’s look more closely at those factors – both internal andexternal–whichcontributetoorinfluencethefinaloutcomeofthestaffingplan.

3.7.1 Internal ConsiderationsAs people are leaving the organisation, we often will have to replace them. In small organisations, a person’s departurewillbemoreobviousthaninalargeorganisation.Staffingplannerswillbeconcernedwiththeaveragenumber of employees who leave and therefore, need replacing just in order to uphold a constant number of employee resources in the organisation.

3.7.2 Wastage AnalysisIn large organisations, it requires a far more rigorous calculation of ‘wastage’ than the rule of thumb and management-ownerjudgmentinsmallerfirms.Thesimplestwayofcalculatingwastageisthroughturnoveranalysisthatreviewsfeatures such as the positions being vacated, the average ages of the people who are leaving, the type of skills that are being lost, etc. Such an analysis gives only a wide image of the current state of employees and it is common to consider a 25% turnover rate as satisfactory/acceptable in modern large organisations. If the turnover analysis approaches 30-35%, then the situation necessitates deeper analysis. There are features that the turnover analysis

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will not disclose, so an alternative calculation called the Labour Stability Index is preferred. This index is calculated using the following formula:

3.8 ConclusionThe best business plans are subject to change in today’s dynamic world and no matter how well a planner considers the various contributing factors, there always exists a certain amount of uncertainty and chance. This requires that instead of attempting to forecast the precise number of people required by an organisation, the trends be studied, in order to appreciate the possible changes in the business and develop a strategy to cope with an evolving situation.It may be practical to make two different forecasts:

A forecast of manpower requirements as per the business plan. Here the supposition is that the plans will go •through, without any major changes.A forecast needs, which is traditional. Here, the impact of various negative factors on the business can be •considered.

Whenitcomestorealadvancehiring,itisprudenttohirepeopleagainstonlythekeypositionsofthefirstforecastand the balance staff based on the second forecast. Such a strategy will facilitate an enterprise to sail through without anymajorproblems.Here,keyjobsaredefinedasthosewhereskillsarelimitedandthereforerequirealongerleadtime to hire, or those jobs where skills are not available in the market, therefore requiring the organisations to invest training where once again the lead time is substantial.


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SummaryForecastingofdemandofhumanresourceneedsisthefirstandforemostcentralstepinanyhumanresource•planning process.The absence of the right resources at the right time may exclude the success of corporate plans, and also lead •to losses because of the organisation’s incapability to cash in on opportunities.Internal changes in the organisational environment involve product mix and capacity utilisation, acquisition •and mergers, and union-management relations amid many other areas.Changes in the external environment include government regulations, consumerism, and competence levels of •employees, among a multitude of other factors.Planning involves developing alternatives and contingency plans.•Competitors’ strategies, including advertising,qualityofproduct, pricing, anddistribution influence future•staffingindiverseways.Futuregrowthandexpansionplanswillinfluencefuturestaffingrequirements.•The philosophy of the top management will mostly determine the policies that inform decisions on future •staffingneeds.An annual budgeting exercise which is the only form of human resource planning in many organisations •sometimes fails to regard the qualitative aspects of manpower requirements and overlooks the long-term needs of the enterprise.A change of location or of technology may result in the non-availability of planned resources and therefore •further postpone the activities.Economic factors frequently result in several planned activities being forced to experience considerable •change.Changing business scenario and environment have to be considered before any assumptions on future turnover •of employees can be made.A technological change in an enterprise does not happen immediately but is always forewarned, over a short •or long period of time.Work-study techniques can be used when it is possible to relate work measurement to compute the length of •operations and the amount of labour required.Flow models are very often linked with forecasting personnel needs.•

ReferencesLunenburg, F. C., • HumanResourcePlanning:ForecastingDemandandSupply. [Online] Available at: <http://www.nationalforum.com/Electronic%20Journal%20Volumes/Lunenburg,%20Fred%20C.%20Human%20Resource%20%20Planning-%20Forecasting%20Demand%20%20Supply%20IJMBA%20V15%20N1%202012.pdf> [Accessed 22 July 2013].FORECASTINGDEMANDANDSUPPLY.• [Pdf] Available at: <http://highered.mcgraw-hill.com/sites/dl/free/0070951772/846002/Bulmash_SampleChapter2.pdf> [Accessed 22 July 2013].IUSoutheast, 2009. • HR Management: Planning & Forecasting. Available at: <https://www.youtube.com/watch?v=sP7Q51zHp4I> [Accessed 22 July 2013].Christopher Hunt, 2012. • Human Resource Planning Lecture. Available at: <https://www.youtube.com/watch?v=pQfZxgsR40U> [Accessed 22 July 2013].Bhattacharyya, D. K., 2009. • Human Resource Planning. 2nd ed., Excel Books India.Bramham, J., 1994• . Human Resource Planning. 2nd ed., Universities Press

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Recommended ReadingGautam, V. 1988. • Comparative Manpower Practices. National Publishing House, New Delhi.Mozina, S. 1984. • GuidetoPlanningforManpowerDevelopment. ICPE: Ljublijana. Armstrong, M., 1988. • A Handbook of Human Resource Management. Kogan Page, London.


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Self Assessment___________ofdemandofhumanresourceneedsisthefirstandforemostcentralstepinanyhumanresource1. planning process.

Philosophya. Forecastingb. Technologyc. Factorsd.

___________, both in terms of quality and extent, to which it is used, will establish the capital and labour force 2. requirements.

Budgetinga. Forecastsb. Accountabilityc. Technologyd.

_________has developed a lot of knowledge for the use of mankind.3. Sciencea. Demographyb. Staffingc. Planningd.

Flow models are very often linked with forecasting __________needs.4. manageriala. budgetaryb. personnelc. technologyd.

Which of the following statements is true?5. Management involves developing alternatives and contingency plans.a. Planning involves developing alternatives and contingency plans.b. Forecasting involves developing alternatives and contingency plans.c. Budgeting involves developing alternatives and contingency plans.d.

____________ planners will be concerned with the average number of employees who leave.6. Staffinga. Forecastb. Demandc. Politicald.

Managers in the __________sector, whose philosophies are more determined by economic and entrepreneurial 7. considerations than by social policy, attempt to employ the optimum number of employees.

politicala. governmentb. privatec. public d.

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_____________, in traditional business, may lead to demand for greater levels of production, sales volumes 8. and services.

Competitiona. Managerial judgmentb. Innovationc. Growthd.

Which of the statements is false?9. An understanding of the trends and an estimation of the needs of an enterprise present probable clues to a. planners about the futureA technological change in an enterprise happens immediately and is always forewarned.b. Futuregrowthandexpansionplanswillinfluencefuturestaffingrequirements.c. For short range planning of less than a year, a moderately precise forecast is maybe possible.d.


The Delphi technique 1. Involve product mix and capacity utilisation, acquisition and mergers, A. and union-management relations amid many other areas.

Internal changes in the 2. organisational environment Adds complication of forecasting.B.

Ratio-trend analysis3. This is the quickest forecasting technique.C.

Uncertainty 4. A method of forecasting human resource needs.D.

1-C, 2-A, 3-D, 4-Ba. 1-D, 2-A, 3-B, 4-Cb. 1-B, 2-C, 3-A, 4-Dc. 1-D, 2-A, 3-C, 4-Bd.


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Chapter IV

Methods and Techniques for Supply Management

Aim


introduce the concept of supply forecasting•

explain Cohort and Census methods•

explore Markov Chain and Renewal models•

Objectives


explicate the factors affecting Internal levels•

enlist the categories under human resource inventory•

elucidate employee turnover analysis•

Learning outcome


analyse the techniques of supplying HR in an organisation•

identify the techniques of manpower supply in an organisation•

understand the concept and dimension of manpower supply•

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4.1 IntroductionHR demand analysis provides the manager with the means of estimating the number of kinds of employees that will be necessary. The next rational step is to decide whether it will be able to obtain the required number of personnel. This information is supplied by supply forecasting.

Supply forecasting measures the number of people probable to be available from within and outside an organisation; after making allowance for absenteeism; internal movement and promotion, wastage and change in hours and environment of work. Reasons for supply forecast are the following:

Helps enumerate number of people and positions likely to be available in future to achieve objectives;•Helps elucidate the staff mixes that will be present in future;•Evaluate staff level in different parts of organisation;•Prevent shortage of people where they are needed most; and•Monitor future conditions with legal requirement for job reservations.•

Forecasting the internal supply human resources is an imperative activity in manpower planning. Human resource planners need to look at the sources of supply and estimate them through in- depth studies to ensure that apt strategies are evolved to meet business demands. For the purposes of discussion, the supply source will be divided into two categories, which are as follows:

Internal supply•External supply•

In this chapter, the salient features of internal supply are discussed along with the techniques used to evaluate and study the same. One of the apparent sources of manpower supply is the internal group of employees. It is crucial to comprehend and evaluate this internal group in order to judge its possibilities in meeting future business demand. Studies on this source of supply are therefore focused on evaluating internal circumstances, probable changes in its character and complexion, and the impact on their availability in future.

4.2 Human Resource InventoryAsafirststep,itisnecessarytocategorisetheexistingemployeesintovariousgroups.Theextenttowhichsuchsegmentation is done will rely on how the planners intend to actually utilise the data. It needs to be kept in mind that a lot of data that may get generated could be of “like to know” type rather than “need to know” type. It is, thus, vital to decide what type of studies the planners wish to assume with relevance to their realistic usage in the planningprocess.Thestratificationoftheexistingpopulationcanbedoneinseveralmanners,someofwhichareas follows:

Categorisation by age. One can study average age, average distribution, minimum and maximum age etc., by •jobcategories,functions,skills,qualificationsetc.Segmentation of employees by functions, job groups, departments, skills, location etc.•Categorisation by gender i.e. male and female, ethnic groups, religion, language etc.•Segmentation by performance levels.•Segmentation by organisational hierarchy, i.e. staff, junior management, middle management, senior management, •etc.Segmentation by salary groups.•

It will therefore, be seen that the same work group can be broken up in several different types of segments, depending on the rationale for which such segmentation is done. In this section, a few important categorisations are discussed, along with their direct application to the planning process.


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4.2.1 Age DistributionSegmentation of existing employees by age is a functional technique to comprehend the characteristics of the internal supply. It presents substantial information about future levels of supplies and their quality, apart from being a good analytical tool in problem analysis. A study of the age distribution can be done for either the whole organisation or for each task independently, or for various skills depending on the application of the study. Some of the applications of this exercise are in:

Understanding the precise wastage due to normal retirement. This will point to the level of contraction in each •work group that is likely to take place during the plan period.Learning potential and the adaptability of the work group. The younger the work group, the higher the likelihood •of their adapting to new methods. Though such a supposition cannot always be hundred per cent correct and therefore cannot be applied to all situations and segments, but all the same it has a good likelihood of being right, if it is tested over a period of time.Comparing the average age of fresh workforce with the average age of the organisation, one can possibly, •drawsomedeductionsontherateofgrowthoftheemployeesthusreflectingonthepromotionpoliciesoftheenterprise.Comparing various work groups will show the comparative growth rates, levels of fresh intake, stagnation, •frustrations, etc.

It should be understood that data on age distribution only is of very little worth, unless it is supplemented with employee turnover, performance levels, salary groups, etc. Nevertheless, mapping age distribution amongst various other applications has great use in decisions related to voluntary separation plans, in the devising of education roadmaps,reviewofpromotionpolicies,workingoutpensionandotherretirementbenefits,etc.

4.2.2 Skills InventoryTaking an inventory of skills and knowledge is another technique of evaluating the stock of human resources in an organisation. This provides information on the qualitative features of human resources and provides an insight into redeployment possibilities, promotions, transfers, the gap between future needs and the level of current skills, etc.

Such an inventory becomes an indispensable input for the assessment of the training needs and recruitment strategies of an organisation. In order to acquire a greater understanding of manpower characteristics, the skills and knowledge inventory has to be superimposed with data on employee turnover and performance evaluations to get an absolute understanding of the characteristics of manpower. When such an exercise is carried out, useful analysis and conclusions are obtained, some of which are:

Turnover analysis along with skills inventory may give indications of the likelihood of the scarcity of certain •skills in the future and also provides likely indications of the supply situation in the market.Performance ratings and skills inventory can together give tremendous insight into the validity/soundness of •managerial perceptions on the “whys” and “hows” of performance trends. It facilitates the enterprise to draw suitabletrainingstrategiesanddecidethequalityofpersonneltobehiredinfuture,sincedesiredqualificationscan be determined on the foundation of performance of the current recruits.Matching the skills and knowledge inventory of employees with their job descriptions can show where over-•qualifiedorunder-qualifiedpersonnelareemployedintheorganisation, therebyhelpingplannerstoevolveredeployment strategies and review hiring practices and policies.

4.2.3 Length of ServiceAnother method of mapping a human resource inventory is by the length of service of the employees. This can be done in a format similar to Fig. 4.1 – instead of age, the breakdown of the workforce would then be by length of service. It could also be done by job category, department, location, etc., for the complete workforce, depending on the use to which the data is to be put.

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If supplemented with other information, such data can underline an organisation’s capability to retain employees by job categories, department, skills, etc. This also provides a good insight into recruitment methods and procedures, the organisation’s ability to retain employees etc. During growth in a particular year an enterprise may hire a sizeable number of employees leading to a reduction in the average length of service in that year. Similarly, restriction of the workforce might lead to a large number of older employees go for voluntary retirement, thus dipping the average length of service.

4.3 Factors Affecting Internal LevelsA human resource planner must take into account the various factors that affect the levels of human resource inventory of an enterprise. In order to understand these factors clearly, a model is shown in Fig. 4.1. As a sample case, take a small section of an organisation, say a small job group and consider two broad factors:

Why or how this job group will increase in size?•Why or how this job group will decrease in size?•

These two factors are discussed here to develop a basic understanding of the question.

4.3.1 Reasons for Increase in Employee GroupsThe reasons for increase in employee groups are as follows:Promotions One of the noticeable methods for increasing the level of the existing work group is through promotion of employees from within the organisation. Planners consider this aspect to assess the number of probable entrants into a particular job level and it is therefore important to study the trends of past promotions and assess the feeder stock to assess its potential for promotion, training needs, etc. Other aspects of employee feeder groups, such as their retention analyses, ageandperformanceprofiles,skillsandknowledgeprofilesshouldalsobestudied.Itisalwaysadvantageoustofillpositions from within through internal promotions. Depending on the needs, one can plan strategies to work on the feeder groups to aid in promotions.

Some organisations pursue a strategy of promotion by time-scale irrespective of the needs of the organisation. This is an undesirable technique of promotions. If such a system exists in an enterprise, planners should, during the planning cycle itself, review the number of employees that will be promoted due to the lapse of time and put in specialeffortstomakesurethatemployeesaresufficientlytrainedbeforetheymoveup.

Redeployment Redeploymentisanothermethodoffillinginpositionsinagroup.Redeploymentstrategiescanbeadoptedbyanenterprisetoutiliseexcessemployeesofonejobgrouptofillinthegapsofanother.Suchredeploymentstrategieshave to be cautiously chalked out, considering the actual redeployability of employees, the investments that will have to be made in order to provide training to make these employees effective in the new job, etc. One will also have to considerissuesrelatedtoimplicationsonindustrialrelations,salary,benefitsstructureandothersuchfactors.


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Promotions Redeployment External Mergers andIn In Hiring Acquisitions

Promotions Redeployment Voluntary Retire- Involun- Sabbaticals,out out Separations ment tary Long

Separa- Illnesses,tions Deaths etc.

s

s s

s

ss

s

s

ss

HUMANRESOURCE

INVENTORY

Fig. 4.1 Influences on HR inventory levels

Job Group UnderConsideration

Promotionsin

Feeder Feeder FeederGroup Group Group

’C‘’B‘’A‘

s

ss s

Fig. 4.2 Promotion channels (Inwards)

External hiringPlanners suggesting external hiring have to consider matters of the supply position, lead time to hire, lead time to introduce/induct, time to provide core training, the ability of the enterprise to retain new employees, the wastage rateforatleastthefirsttwentyfourmonths,theskilloftheenterprisetodrawtruetalents,etc.Itis,however,alwayspreferable to seal the gap between demand and supply through internal promotions and redeployments as far as possible, before taking to external hiring.

Mergers and acquisitionsMergersandacquisitionsalsoinfluencethehumanresourcesupplyandmayraisethestocklevels.

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4.3.2 Reasons for Decrease in Employment Groups Promotions OutA promotion out to other job levels is a reason for reduction in a particular work group. Planners must consider the tendency of “promotions out” in the past, and possibilities future losses. Fig. 4.3 demonstrates that for a particular job group, there could be more than one group of jobs serving as a receiving group. Planners, therefore, have to firstassessthedemandsofthereceivinggroupandthepromotabilityfromthefeedergroupandthereforearriveatan analysis of what is possible to be the loss due to out-bound promotions.

Receiving Receiving ReceivingGroup Group Group

’C‘’B‘’A‘

Job Group UnderConsideration

s ss

s Promotionsout

Fig. 4.3 Promotion channels

Fig. 4.3 illustrates an instance of feeder and receiving groups in relation to a collection of jobs that exists in a typical sales and marketing environment. The surplus employees of a particular job group can be decreased through conscious execution of the redeployment strategy. Such a strategy must always be implemented with caution and care and after considerationofthevariousissuesspecifiedearlierinthe“redeploymentin”sectioninthisunit.

Voluntary separationsVoluntary separations are mainly a result of employees resigning from the services of a company for various reasons. In this unit a detailed discussion on employee turnover is available, which will give a rather good insight on the handling of reduction of employee turnover. Voluntary separations may also crop up due to employees opting for early retirement or because of voluntary separation plans declared by the enterprise. While announcing such plans the organisation must make an assessment of their expected fall-out. Depending on how the scheme is designed, the percentage of loss from a particular group can be assessed and the enterprise must therefore design schemes taking into account the age and service outlines of the target groups, that is, those groups from where the enterprise anticipates utmost separations to take place.

SalesExecutives

MarketingExecutives

MarcomExecutives

Feeder Group

RegionalSales

Managers

ProductManagers

DistributionChannel

Managers

Receiving Group

Group ofArea Sales Managers

ss

s ss

s

Fig. 4.4 Feeder and receiving group for promotions


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A planner is thus expected to study the trends of normal attrition and the impact of early retirement plans, if any, so as to assess the degree to which the stock of a particular job group is likely to be exhausted during the plan period.

RetirementInmostcountries,organisationsstatetheageofretirementorsuperannuation.Onceapersonreachesthespecifiedage, he/she automatically retires from employment and thus planners can easily compute the number of retirees for aparticularyear.Inthosecountries/enterpriseswheretheageofretirementisnotspecified,anassessmentcanbemade on what percentage of employees are likely to be lost due to retirements based on the trends of the past and theexistingageprofile.

Other rseasonsIn organisations where there are excesses all over, and redeployment strategies are either not possible or are not enough, and where the organisation is unable to offer “golden handshakes” in the form of voluntary separation plans, involuntary separations in the form of retrenchment can be used to lessen the workforce to an optimum point. This strategy, however, should be the last alternative. Depending on the legal structure, diverse methods will have to be used. Such strategies will differ from country to country and enterprise to enterprise. Involuntary separations could also be due to disciplinary or performance related factors where the management of an enterprise commences the separation of the employees. The proportion of such separations could be minimal, though the planners must be aware of this factor. Prolonged illness, deaths and incapacities due to accidents are some more reasons for exhaustion in the human resource inventory. However, these numbers are generally inconsequential in most of the organisations.

4.4 Employee Turnover AnalysisAlthough discussion on employee turnover analysis appears in the previous chapter under the section on demand generation,itssignificancetotheforecastingofsupplyrendersisimportantenoughtodeservefurtherdiscussionhere. Annual employee turnover is a way of measuring the attrition or wastage of employees. It is also known as the index of turnover or percentage of wastage, being the percentage of employees who suspend/quit employment. Generally this analysis is done for those employees who voluntarily break up from the services of an enterprise. To calculate the turnover, the following formula is generally used:

For example, if in an organisation the average number of employees during 1996 were 5,000, and sixty out of these left during the year, the yearly rate of employee turnover is calculated as follows:60/5000 × 100/1 = 1.2 per cent

This means that 1.2 per cent of the employees left this organisation during 1996. Employee turnover analysis can be done in various ways for the complete organisation, department or location wise, by reasons for turnover, and by performance rating.

In addition to internal supply, the organisations need to look out for potential employees from external sources. Externalsourcesareessentialforspecificreasons.

Availability of new blood and new experience;•Replenishment/Replacement of lost personnel; and•Tomeetexpansion/diversificationneeds.•

Sources of external supply differ from organisation to organisation, industry to industry, geographical locations to locations.

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4.5 The Cohort MethodPrior to understanding the ‘Cohort Method’, a little about the concept of survivor analysis is to be understood. This is the corollary of employee turnover analysis. Here, the percentage of employees who carry on in the employment of an enterprise is measured as opposite to the percentage who quit employment. In the Cohort Method, an analysis is done of a homogeneous group, i.e. a group of same or similar employees or those with same or similar characteristics. Such a group is called Cohort. At the end of each year the number of employees from the cohort who survive is calculated and expressed as a percentage of the total number of employees hired when the cohort was formulated. This technique is generally applied to a group of employees whose survival in an enterprise is short. Fig. 4.5 shows astudyofthesurvivorfunctionoveraperiodofthreeyears,bymeansofthecohortfunction.Inthisfigure,thepattern of retention by an enterprise over a period time noticeably shows the changing retention outline. Such a changecouldbeduetotheinfluenceofdiversefactorssuchaspersonnelpolicies,productandmarketingstrategies,leadership styles, etc.

01 2 3 4 5 6 7

10

20

% ofSurvivors

Year IIIYear II

Year I

Time in years

Fig. 4.5 Cohort survivors function applied over three years

An analysis of this type enables the planner to estimate the likelihood of a particular group of employees, with adefinedlengthofservice,leavingtheorganisation.Acohortanalysiscanalsobedoneonthebasisofage.Thegraphical representation of this analysis is known as “Log-normal wastage curve” the reverse of which is a survival curve. The theory behind this method was developed by K.F. Lane and J.E. Andrew.

Whilethereareseveraladvantagesofthismethod,therearealsopracticaldifficultiesinmanagingthisexercise.Some of the problems are:

Each leaver of an enterprise should be historically connected to his/her cohort and the size of the cohort should •beidentified.If there exists a low rate of wastage, the relative time taken to plan the cohorts could be ordinarily long.•Planners always start forecasting the wastage of groups who have not even joined the organisation.•


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4.6 The Census MethodThe Census Method conquers some of the problems of the Cohort Method by taking a bird’s eye view of the diverse cohorts at one point of time. These views are then pooled to make an estimation of the survival, either by age or by length of service. In Fig. 4.5, using the Census Method, the survivor function is calculated based on the length ofservice.Thisisaverysimplemethodoftabulatingthedata.Inthefirstcolumn,wehavethelengthofservicein years and in the second column we have the number of employees against each of the service length groups: at the beginning of the year. In the third column the number of employees who left employment is tabulated against each of the service groups and in the next column the wastage rate is calculated. In the last column the survivor rate iscomputed.Togetthesurvivorfunctionforthesecondyear,thesurvivalrateofthefirstyearismultipliedwiththe second year. For the third year, the survivor function of the second year is multiplied with the survival rate of the third year and so on. Here, the survivor function depends on the assumption that people in their second year of employmentwillhaveexperiencedthesamepatternofsurvivalintheirfirstyear,asdothepeoplewhoarenowintheirfirstyear.Incalculatingthecentralratessurvivorfunctionweuseaveragestockinthecalculationsasagainstthe stock at the beginning of the year. When the survivor function falls, it indicates a low rate of survivals and high rate of wastage. While interpreting this function, it is important to note that it is a cumulative curve.

Once the survivor function is established for a group of employees, it is possible to predict the probability of separation that exists in various service length groups of employees.

4.7 Markov ChainIn most organisations, employees are divided into several grades and they move up the organisational ladder from one grade to another. This may be considered as the hierarchical form of a manpower system. By and large, the routesthatemployeesfollowthroughthesystemarewelldefined.Fig.4.6illustratesanexampleofthisnature.

In a simple form of growth and hierarchy, an employee may grow from level I to level II, and then to level III and so on. It is, therefore, assumed that for level II the feeder group is level I, for level III it is level II and so on. From each group natural wastage can be expected due to the exits of employees.

Leavers LevelVI

Leavers LevelV

Leavers Level acceleratedIV entry/promotion

Leavers LevelIII

Leavers Level acceleratedII entry

Leavers LevelI

s

s

s

s

s

ss

ss

ss

s

Fig. 4.6 Markov chain

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4.8 Renewal ModelsIntheMarkovmodel,theassumptionsarevaryinggradesizeandfixedmovementpossibilitiesduetothepushfactor.Intherenewaltheory,theassumptionisagainthatoffixedgradesizebutupwardmovementsarelinkedtovacanciesat higher levels. Such vacancies are caused either due to natural wastage or due to upward movements. This model, therefore, works on the probability of employees leaving an organisation at some point or another. Such exits are atasequenceofintervals,dependingoneithertheageprofileortheprofileoflengthofservice.Thefractionofleavers is likely to follow normal distribution. As and when a position is created, the assumption is that it will get occupied through internal promotions. Promotions could fall into either of two possibilities, viz.: promotion based on seniority, which will set off chain reaction and cause recruitment at the lowest level of hierarchy, or promotion due to merit where the promotability of individuals will be taken into account. Prof. Bartholomew has developed models based on these assumptions.

Institute of Manpower Studies (1972) in its report has compared the Markov Chain model and the renewal theory model as follows:

“The Markov or ‘Push’ type models assume that promotions are not reliant on vacancies occurring, but instead are theresultofmanagement‘pushing’individualsalongcareerpathsatfixedrates——.”

“At the other extreme the renewal or ‘Pull’ type models assume that all promotions are the results of vacancies to fillgapsastheyarise.”

It should be noted that in real life, a combination of Push and Pull is seen. At times both are seen independently. It is, as a result, crucial to consider historical trends and arrive at well-studied assumptions on future patterns.

Most mathematical models can be applied to large organisations only, where the population is large enough for the projections to be correct. It should also be kept in mind that these models work only in steady socio-economic and political scenarios, with stable markets. In circumstances where there are changing variables that are likely to make a sizeable impact on the enterprise, these models may not work, as the future may not essentially follow the trends of the past. At senior levels of the hierarchy, the possibilities of mathematical model working are likely to be low, not only due to small numbers but also due to the fact that numerous internal as well as external factors always work on this group in a deep manner.

Human resource planners need to look at the sources of supply and review them through in-depth studies to make sure that appropriate strategies are evolved to bring together business demands. The supply source will be divided into two categories viz., Internal supply and External supply. External supply is determined by factors unconnected to the company or enterprise level. Internal supply over which a company or enterprise has control is governed by thewastage rate (i.e. the rateof leavers from thecompany) and the internalflowscausedby transfers andpromotions.

Methodsofanalysisandforecastingare,however,awelldefinedMISbasedonpersonnelhistoryrecordsofeachindividual employee. Annual employee turnover is a method of gauging the attrition or wastage of employees. There are several methods to be used to calculate various aspects related to employee service, age, employee exit, etc. In turnover analysis, this analysis is known as “Long-normal wastage curve”. Most mathematical models can be applied to big organisations only, where the population is huge enough for the projection to be accurate.


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SummaryHR demand analysis provides the manager with the means of estimating the number of kinds of employees •that will be necessary.Forecasting the internal supply human resources is an imperative activity in manpower planning.•Human resource planners need to look at the sources of supply and estimate them through in- depth studies to •ensure that apt strategies are evolved to meet business demands.One of the apparent sources of manpower supply is the internal group of employees.•It is vital to decide what type of studies the planners wish to assume with relevance to their realistic usage in •the planning process.Segmentation of existing employees by age is a functional technique to comprehend the characteristics of the •internal supply.Taking an inventory of skills and knowledge is another technique of evaluating the stock of human resources •in an organisation.During growth in a particular year an enterprise may hire a sizeable number of employees leading to a reduction •in the average length of service in that year.A human resource planner must take into account the various factors that affect the levels of human resource •inventory of an enterprise.Some organisations pursue a strategy of promotion by time-scale irrespective of the needs of the •organisation.Redeploymentstrategiescanbeadoptedbyanenterprisetoutiliseexcessemployeesofonejobgrouptofillin•the gaps of another.Voluntary separations are mainly a result of employees resigning from the services of a company for various •reasons.Annual employee turnover is a way of measuring the attrition or wastage of employees.•IntheMarkovmodel,theassumptionsarevaryinggradesizeandfixedmovementpossibilitiesduetothepush•factor.Most mathematical models can be applied to large organisations only, where the population is large enough for •the projections to be correct.Human resource planners need to look at the sources of supply and review them through in-depth studies to •make sure that appropriate strategies are evolved to bring together business demands.At senior levels of the hierarchy, the possibilities of mathematical model working are likely to be low, not only •due to small numbers but also due to the fact that numerous internal as well as external factors always work on this group in a deep manner.

ReferencesHUMANRESOURCEPLANNING(HRP).• [Online] Available at: <http://www.mbaskool.com/business-concepts/human-resources-hr-terms/3907-human-resource-planning-hrp.html> [Accessed 22 July 2013].nptelhrd, 2010. • Human Resource Planning-II. [Video online] Available at: <https://www.youtube.com/watch?v=FLRtMw8dD3E> [Accessed 22 July 2013].edu wala, 2012• . Human Resource Planning. [Video online] Available at: <https://www.youtube.com/watch?v=vSkGQ8tGx3I> [Accessed 22 July 2013].Rowland, K.M. & Summers, S. L. 1981. • Human Resource Planning: A Second Look. Personnel Administrator.Walker, J.W. 1980. • Human Resource Planning. McGraw-Hill, New York.Human Resource Planning: Process, Methods, and Techniques.• [Pdf] Available at: <http://www.psnacet.edu.in/courses/MBA/HRM/3.pdf> [Accessed 22 July 2013].

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Recommended ReadingDessler, G., 2001. • Human Resource Management. 7th ed., Prentice-Hall of India Private Ltd., New Delhi.Flamholtz, E. & Lacey, J., 1981. • Personnel Management: Human Capital Theory and Human Resource Accounting. UCLA Press, Los Angeles.Agrawal, Satya Prakash, 1970• . Manpower Demand: Concepts and Methodology. Meenakshi Prakashan, Meerut.


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Self Assessment_________forecasting measures the number of people probable to be available from within and outside an 1. organisation.

Humana. Inventoryb. Demandc. Supplyd.

Forecasting the __________supply human resources is an imperative activity in manpower planning.2. externala. internalb. futurec. skilld.

A human resource planner must take into account the various factors that affect the levels of human resource 3. ____________of an enterprise.

knowledgea. inventoryb. gradec. skillsd.

____________ of existing employees by age is a functional technique to comprehend the characteristics of the 4. internal supply.

Segmentationa. Forecastb. Turnoverc. Renewald.

Annual employee turnover is a way of measuring the _________of employees.5. inventorya. growthb. wastagec. skillsd.

Which of the following statements is true?6. No mathematical models can be applied to large organisations only.a. Most mathematical models can be applied to medium organisations only.b. Most mathematical models can be applied to small organisations only.c. Most mathematical models can be applied to large organisations only.d.

A __________out to other job levels is a reason for reduction in a particular work group.7. renewala. promotionb. turnoverc. separationd.

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Planners suggesting ___________hiring have to consider matters of the supply position, lead time to hire, lead 8. time to introduce/induct etc.

externala. internalb. employeec. HRd.

____________strategiescanbeadoptedbyanenterprisetoutiliseexcessemployeesofonejobgrouptofillin9. the gaps of another.

Staffinga. Mathematicalb. Redeploymentc. Planningd.


Voluntary separations 1. TheassumptionsarevaryinggradesizeandfixedmovementA. possibilities due to the push factor.

Mergers and acquisitions 2. AlsoinfluencethehumanresourcesupplyandmayraisetheB. stock levels.

The Census Method 3. Mainly results of employees resigning from the services of a C. company for various reasons.

In the Markov model 4. Conquers some of the problems of the Cohort Method by taking D. a bird’s eye view of the diverse cohorts at one point of time.

1-D ,2-A ,3-B ,4-Ca. 1-C ,2-B ,3-D ,4-Ab. 1-D ,2-B ,3-C ,4-Ac. 1-A ,2-B ,3-C ,4-Dd.


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Chapter V

Contemporary Trends in Managing Demand and Supply

Aim


introducetheaspectofcompensationandbenefits•

explain the emerging organisational structures•

explore the features of good performance appraisal systems•

Objectives


explicatetheaspectstobeconsideredwhilestaffing•

enlist the trends which lead to transformations in workplace•

elucidate the trends in labour supply•

Learning outcome


analyse the importance of building the right organisation culture•

enumerate the trends in labour demand and supply•

understand human resource measures and audit•

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5.1 Introduction“Theneworganisationequationforsuccessisthatprofitandproductivityarebestcreatedbyhalfoftheworkforce,paid twice as well as producing three times as much” - Charles Hardy. In fast changing world, there have been qualitativeshiftsinpatternofemployment,yetthesignificanceofarrangingtherighthumanresourceatprecisetimeshas not weakened. In the modern world, due to incessant altering technology and dynamic character of business, thereisagrowingdemandforskilled,multi-skilledknowledgeworkersandprofessionalswhoarecomplextofindand retain. Increasing demands of consumers to get “value for money” and global competition, keep enterprises on their toes, ensuing in increased demand for people with suitable talents along with the right values and beliefs. Shifts in demographics, globalisation of markets, fast changing technologies, increasing consumer demands, curtailment of product life cycles, surplus or shortage of workforce, constantly shifting political and economic alliances and several other environmental factors have caused several challenges for industries and, in turn, for human resource management.

5.2 Emerging Organisation StructuresToday’sdynamicandfastchangingenvironmenthasgivenrisetoflatterorganisationalstructures.Someorganisationsliketoexhibitflatandreversedpyramids,withthecustomeratthetoplevelandthefirstlinestaffatthesecondlevelandsoonasshowninfigurebelow.

Customer

Customer

Traditional Pyramid

New Pyramid (Reversed)

Fig. 5.1 Organisation structures

Inactuality,however,andforlong-termsurvival,theorganisationalstructureshouldbelikeaflexiblering,withthecustomerandthemarketplaceatthecentre.Theringhastobeorganicwiththefluidorganisationchangingitsfeaturesto go with the demands of the market place. These are the days of neo-conglomerates, where multiple organisations gettogethertomanagespecificdemandsofthemarket.Atthesametime,twoorganisationsmightbecompetingforone product line in a market and working as partners for a second product line, acting as distributors for each other for a third and for a fourth might be indifferent to each other. In this ever changing, dynamic corporate world, new definitionsofhierarchy,chainsofauthorityandreportingrelationshipscontinuouslyappear.Self-managedworkgroups,whichfocusonprovidingsuperiorservicesandproductsthatprovidespecificcustomerdemandsaretherealities of today.

There is an obvious move from function centered to process centered organisation structures, where each process thattheorganisationevolvesiswithadefinitereasontosatisfysomecustomerneed.Performancemeasuresareestablished to assess and constantly improve processes with inappropriate processes being abolished and new ones being evolved continuously. This type of an organisation is organic, relevant and stands the test of time. Long-term survival, however, depends on the organisation culture and customs. Values and beliefs evolved by the enterprise would have their spotlight on people and the market in order to sustain over a long period. If values and beliefs do not focus on these fundamental factors (customers and employees) the probability of the enterprise surviving for a long-term will be bleak. This is certainly a challenging period for the human resource planner who has to plan for adynamicflexibleworkforcewhichcan’tbeaccuratelydefined.


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5.3 Transformations at the WorkplaceSocial, economic, organisational and technological changes have an impact on the work-related/occupational structuresattheworkplace.Traditionaltrendshavegivenwaytonewoccupations,andnewdefinitionsofworkarematerialising. Some of these trends are discussed here.

Trend 1A progressive shift from blue-collar jobs is taking place both from the service as well as manufacturing sectors to white collar jobs mainly in the service sector. Shift of this nature is evidently resulting in inter-sectoral movement of people, with the bulk of this shift being from the manufacturing sector to the service sector.

Trend 2There is a shift from the agricultural to the service sector. The previous tendency of rural to urban movement still continues and even within a rural situation there is rapid expansion in the service industry.

Trend 3There is a visible growth in the educated, skilled work force as against the semi- and unskilled employees of the past. This varying pattern of the work force has its own behavioural and attitudinal repercussions in this work place.

Trend 4Therehasbeenadeclineofconventional/traditionaloccupationalgroups.Newclassifications,basedonbroadskillsets, are surfacing in today’s industry primarily due to multi-skilling and multitasking. We can, in today’s context, observe teams of production workers and teams of maintenance engineers with barely any distinction within them in terms of grades/skills.

Trend 5With the greater focus on productivity upgradation, employment in the higher occupational grades is rising and the number of jobs in the lower grades is declining. This is due to the knowledge and skills needed to manage and control new technologies and work processes that are of higher levels than those in the past. Enterprises are, consequently, constantly demanding advanced and superior skills. General workers are using lesser manual skills because advanced machines at their disposal make greater demands on their mental skills. Thus, in the modern production environment, requirements of the mental, mathematical and abstract skills are higher than that of manual skills. Employees seem to just about establish intellectual relationships with their machines.

Trend 6In the service sector, technical skill requirements are gradually reducing and being replaced by social skills including interpersonal, communication skills and so on. Soft skills to improve customer interfaces are of immense value, since service is more at a modular than at a component level.

Trend 7The formal, centralised management practices of the past are bit by bit giving way to looser, more independent and informalmethodsofmanagement.Thischangeisessentialbecauseofthechangingprofileofpeopleandoftheworkitself. Employees at all levels need to attain broader skills and capabilities in order to adjust to new technology and work organisations. Since organisations or educational institutions cannot teach every skill or technology, today’s workers need to be intelligent and sharp, with wide conceptual skills so that they can obtain the right knowledge at the right time in an ever dynamic world.

5.4 Flexible WorkplaceIn the current dynamic business environment, the conventional idea of a specialised workforce trained to do one job well is fast fading. The traditional workforce came to an organisation with a skill set or learned a skill set and performedthesametasksoveralongperiod,possiblyevenforalifetime.Restricted,narrowskillsandspecificjobdesign was traditionally the most acknowledged for job structure. Employees were proud of the skills they possessed andunionsresistedandchangeinjobdescriptions.Theseinflexibleoccupationaldemarcationsofthepastgavearemarkable sense of security to employees but put limits on the progress of their careers. Time bound promotions,

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chieflyaimedatgivingremunerationandsocialstatus,werethenorm.Suchpromotionsdidnotessentiallychangethe character of the work and nor did they signify the achievement of higher skills or good performance. They did, however, indicate seniority. Under such conditions, any effort of the management to introduce changes orstimulateflexibilityinjobdesignmetwithstrongresistanceandconflict.Intoday’sworldofeverchangingtechnologies and dynamic market conditions, a need for manifold tasking and several careers in one’s lifetime is the differentiating feature between a successful and an unsuccessful enterprise. It is, therefore, very important that planners endeavour to generate a culture that enables smooth technological and process transitions and makes an organisationflexibleandadjustable.Theneedforuninterruptedreorganisationinordertomeetvaryingbusinessneedsrequiresaflatterandlesshierarchicalstructure.Alltheseareachievableonlyiftheworkforceisqualified,skilled,flexibleandinanonstoplearningmode.(Thesearepre-requisitesnotonlyfortheorganisation’sbutevenfor the individual’s survival).

Forhumanresourceplannersthisnewenvironmentcreatesnewchallenges.Insteadofplanningforspecificjobs,they have to plan for wide-ranging job groups. Strategies for hiring, training and re-training the workforce should revolvearoundthebroad-basedskillsrequiredforaparticularjobgroup,ratherthanaroundspecificoccupations.Job descriptions and performance measures have to be reviewed and revised on a customary basis. In addition, theplannerhastocraftaflexible,adaptiveworkculturethatwillpresentopportunitiesandencouragecontinuouslearning.

5.5 Building a CultureBuilding the true organisation culture is the key concern of a human resource planner. Some of the cultural imperatives in today’s environment are:

Flexibility and adaptability of both the enterprise as well as the individuals working for it•Global outlook•Obsession with quality•Customer orientation•People orientation, and•Creationofalowcost,profitableoperation•

Culture is really a way of life for an organisation. It is the summation of the beliefs, values and objectives of an enterprise which are manifested through its behaviour. In today’s unstable environment, the anchors that an enterprise has are:

Corporate vision/idea•Basic beliefs and values•Continuous training and development•Respect for people•Customer centric orientation•

Astrongculture,whichiswellinternalisedbyemployeesandreflectedthroughtheprocessesandsystems,leadstotheformationofastrictlyflexibleworkforcebecausetheneedtohavedetailedrulesandregulationsdiminishes.A handful of guiding values provide clearness to employees and helps them know what they are supposed to do innearlyallsituations.Inthedeficiencyofastrongculture,employeesstayonwithanenterpriseforthepositionsthat they hold, the remuneration that they receive and the status that they enjoy. Any effort to change this meets withtremendousresistancebecausetheemployeeisworkingforonlythesereasons.Thisdecreasestheflexibilityof the enterprise.

Highly culture-driven organisations have employees who work for the enterprise because of the association of values, beliefsandobjectivesandanacceptanceofalltherelatedprocessesandsystems.Thismakestheorganisationflexible.Long-term sustenance of a culture is achievable only if it is aligned to the market place and is customer oriented. Coupled with this, a culture that respects individuals, and encourages creativeness and teamwork is the one likely


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to stand the test of time. One cannot attract and retain people only through the attractiveness of the Compensation andBenefitsPlans.Attractivecompensationplanscoupledwithdemandingworkandissatisfyingworkcultureisa formula for attraction and retention. It is here that the human resource planner has a key role to play, by inducing management to develop a culture that supports all the human resource systems and leads the company to a competitive situation in the marketplace.

5.6 Performance AppraisalsFor the human resource planning process to be successful in any enterprise, it is critical that an effective performance appraisal system be in place to maintain the various human resource systems. A good performance appraisal system should focus on the developmental facet of an individual, rather than the evaluation facet. To this extent, delinking rewards with the appraisals is essential. A good appraisal system should achieve the following:

Provide periodic productive feedback to the employee on his/her areas of strengths and areas where improvement •is achievable.Enable the manager and employee to together evolve and periodically review the development plans.•Should enable the drawing up of objectives in association with the company’s policy, for forthcoming years.•Enable an employee to comfortably communicate his/her aspirations/expectations/limitations to management •and understand the company’s plans and management’s expectations of him/her.

One of the foremost reasons for the malfunction of appraisal systems is the connection that exists between them and annual salary increases and other rewards. Such a linkage vitiates the strong developmental climate that must be created during appraisal meetings and counseling sessions.

Another reason for the restricted success of appraisals is because of the tendencies of managers to evaluate the potential of an employee rather than performance. In a large number of enterprises appraisals are a yearly feature with all employees evaluated in the course of a month. This radically brings down the quality of appraisals. Imagine a manager having a span of control of 10 employees doing 10 appraisals in one month while doing his/her other duties also. Let us look at the reviewing manager who may have to not only do appraisals of his/her 8/10 direct reports but also to review appraisals of 50 to 100 employees who may report to his/her direct reports. Further, the quality of inputs that the Personnel Department can offer when confronted with a large number of appraisals almost simultaneously unsurprisingly deteriorates. To improve the quality of appraisals it is highly advantageous to spread them throughout the year.

The appraisal system should necessarily be appraisable centered with feedback from:Immediate supervisor,•Customers to whom appraisee caters,•Peers with whom the appraisee has to team up, and•Subordinates, who are led by the appraisee.•

The dearth of systematic feedback from any quarter will render the system unproductive, since appraisal systems are an important vehicle for career development, productivity improvement, rationalisation of work, etc. which, are all central parts of the human resource planning activities. Human resource planners have to always examine the health of this crucial system.

5.7 StaffingStaffingisanotherkeyareaoffocusforahumanresourceplanner.Traditionalfocus,whilestaffingorhiringemployees,usedtobehiringthebestpossiblepeople,basedontheirqualifications,experienceandgeneralbackgrounds.Intoday’s dynamic business climate, however, the focus should be on the following qualities:

The candidates must possess the knowledge and skills needed to execute the job for which they are being •hired.Values and beliefs of the candidates should be in agreement with that of the organisation.•

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The candidate should have an open mind and should be adjustable.•Conceptual skills of a high level are imperative so that the employee is able to seize and learn new processes •and technologies with ease and simplicity.The employee should be in the learning mode. The notion of lifelong learning is enormously important in order •to succeed in the competitive environment of modern days.Aspirationsandobjectivesoftheemployeeshouldbesuchthattheywillnotconflictwiththeorganisation.•In transient organisations, creativity is an aspect that the candidates should ideally possess.•

Employment of people who meet the requirements not only of today’s job but also that of evolving jobs is very important. In order that the enterprise is able to employ the right people, preparation of job descriptions and performance measures should be tied with a listing of knowledge and competencies required for effectual performance. The selectors should work out appropriate tests and direct the interviews in order to recognise the qualities listed. ThesuccessofanyHRplanningprocessliesingivingsufficientleadtimetorecruitersinselectingtherightpersonswho will perform well.

5.8 Compensation and BenefitsWith the enhanced mobility of labour and crossing of national borders, the need for a competitive compensation and benefitssystemissupreme.C&Bplansshouldbeorientedbothtoattractingaswellasretainingkeyprofessionalsandmustbeplannedsoastoprovidesubstantialflexibilityinorganisationalstreamlining.Multiplegrades,cateringto various professions, occupations or trades, create hindrances and reduce the ease of organisational restructuring. C&Bplans,intoday’sscenario,havetobeuncomplicated,withminimalclassificationstomeetbroadskillslevels.Thereshouldbesufficientschemesandprocessestofacilitatethecorporationtorelocatepeoplefromonelocationto another and one job to another with ease. Incentives for easy mobility have to be built in. Rewards should provide one-time achievements and be short-term in nature rather than long-term salary increases. Since employees in a fast-changing scenario might not have the capacity to uphold good performance over long durations, recognition should be in the form of enhanced assignments, jobs and higher visibility. C&B professional should design schemes that enable managers to present rewards and recognition to good performers at the right time. Empowering managers by decentralising the decision-making process is the ‘key’ in today’s aggressive and competitive situation.

Concern over the retention of employees was never as immense in the past as it is today. Rising labour mobility, a highly competitive labour market and virtual war between corporations to attract the right talents is compelling managements to propose “Golden Handcuff” plans. These plans should not be of a very long-term duration again because of the question of the employee’s capability to maintain his performance. A plan to retain an employee forfourtofiveyears,withtherightvestingperiodisadequate.Throughannualadministrationoftheschemesthehandcuff can always be extended.

Another dispute that today’s enterprises face is in the selling of C&B plans to employees. The perception of total compensation,benefitstailormadetomeettheindividual’sneedsandvisibilityofthetotalstructurearethekeystosuccess.Theimportanceoffairplay,equityandmerit-linkedrewardscontinuetobethefoundationsofanyflourishingC&B plan. In the outlook of a human resource planner the C&B plans become particularly critical as they have to catertoretention,attractionandflexibilitythatahumanresourceplannerisalwayslookingfor.

5.9 Dealing with Relocations and RedundanciesSome of the most important problems that a human resource planner is faced with are the issues related to the repositioning of staff and dealing with redundancy in the work force. Redundancies occur due to either of the following:

Job getting abolished because of restructuring. These create additional manpower that is redundant in the revised •context of the business.Thechangingprofileofmanyjobsisasaresultoftechnologychanges,ultimatelycausingidlenessofemployees,•although the jobs themselves may not get abolished as such.


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Relocation is not rare in the new competitive background, where business necessities often require an enterprise torelocateemployeesfromonecitytoanother.Alargenumberofemployeesfindithardtomigrateduetodiversepersonal reasons. Employees, unions and society at large have always opposed these critical factors in human resource planning. Governments have protected jobs or have made it complicated for employers to retrench/layoff through legislations. This situation is true of most under-developed/developing countries, wherein unemployment rates are high. As a result, the implementations of modern technologies and processes that result in a reduction of the workforce have always met with great opposition. In this intricate situation, employers have to resort to various strategies to manage the problems of redundancies and relocations. Some strategies adopted by Indian businesses are listed as follows:

Employers have resigned to the fact that they cannot downsize. Surplus workforce is carried over by the •business.Wide scale downsizing or even closure of operations, by offering attractive voluntary separation or voluntary •retirement plans.Outplacement programmes.•Investing in retraining the redundant work force, either with a view to absorbing them in the revised organisation •structure or to outplace them.Offering incentives and support to the redundant workforce to start their own enterprises, thus overcoming •theproblemofsurpluslabour.Suchprogrammesincludeofferingoffinancialassistance.Inmostsuchcases,employees take up distributorship of products or become suppliers of spare parts, stationery etc. to the original enterprise. The extent of success in handling redundancies and relocation issues depends on the degree and quality of planning and the point of communication that the management has established with the employees and unions. As soon as managements are seen to be genuine in their efforts to re-establish the redundant workforce, unions and employees typically provide cooperation. The important factors here are:

Communication. �Sincerity of efforts to rehabilitate. �Takingemployeesandunionsintoconfidenceonthereasonsforsuchaction. �Creating a win-win situation for all the parties. �Being open minded to negotiate/discuss. �Providing valid reasons for the downsizing. �

5.10 Human Resource Measures and AuditInordertoensurethatthehumanresourceplanningprocessisefficientandapplicabletotheorganisation,asystemof periodic review in the form of an audit and the tracking of business fundamentals, in the form of measures of valuableperformanceofcriticalsystemsandprocesses, isessential.Prior to identificationof themeasuresandsystem of audit, it is vital to settle on the scope and role of the human resource function. The basic management philosophies set the expectations from the human resource function in an enterprise. For periodic reviews and audits the following points are important:

Association of the personnel department’s objectives with the organisation’s objectives, critical business issues •and key success factors.Existence of well acknowledged key processes that cater to the needs of the organisation, particularly the key •issues. Such processes must have performance measures and improvement plans.

The auditors/reviewers may look at the following areas during the periodic audits/reviews:Does the department have vision, mission and value propositions and are these in alignment with the organisation’s •objectives and values?What are the success factors for achieving the departmental objectives and what are the action plans for •these?Are the elements of the strategic focus, i.e. the mission, vision and value propositions oriented to meet customer •needs?

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Arethekeyprocessesinthedepartmentidentified?Aretheprocessownersidentifiedwiththeprocessperformance•measures?How is the department structured? Is the structure supportive of the key processes of the entity and the objectives •of the departments?What strategies and practices are in place to determine the needs of the customers? What actions are taken to •seek feedback, give feedback and to take corrective actions?How are future needs determined? What actions are taken to cater to the emerging needs?•What strategies are in place to collect market information, competitive data, best practices from the environment, •etc.? How are corrective actions initiated on the basis of such data?How does the department go about determining the short-term and long-term plans? How often is the progress •reviewed? What are the course corrective strategies and contingency plans?Is the department effective in its communication processes across the organisation? Do customers of the •department feel involved in the department’s activities and plans? Does the entity management provide resources and commitment to the human resource department’s activities?

5.10.1 Personnel MeasuresThisaspectexemplifiessomeforthemeasuresthatcanbeusedtoevaluatetheperformanceofthehumanresourcedepartment. Some examples of measures and business fundamentals that can be used to assess the performance of the personnel function are given as follows:

Selection and recruitment•Acceptance rates of professional hires �Recruitment cost �Lead time to hire �Percentage of hires from the internal data bank �Performance levels of new hires �Retention rate of new hires �

Succession and career planning•Numberofqualifiedbackupsforeachkeyjob �Ratio of internal placements to external hires �Internal relocation cost �

Training and development•Training days per employee �Cost of training per employee �Training effectiveness – Relevance �- Relevance- Timeliness- Application/applicability

General•Employee satisfaction survey rating �Compliances with performance appraisal process �Achievementsinaffirmativeactiongoals �Span of control �Employee turnover analysis �Ratiosofrevenuetoemployees,ratiosofprofitstoemployees,ratiosofoutputtoemployees �Availabilityofwelldefinedjobdescriptions �


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From among the various issues that need to be reviewed, critical ones will be the following:Effectiveness and cost of C&B plans, its competitiveness, packaging and employee acceptance. System of •periodic reviews and revisions. Question of equity and fair play.Training and development activities, their relevance, timeliness and usefulness.•Employeeattitudereview,remedialactionplans,periodicityofthesurveys,theirsignificance,etc.•Hiring processes, their cost, quality of hires, etc.•Frequency, effectiveness and relevance of the two-way communication processes.•Grievance handling systems, etc.•

An effective audit and performance measure tracking system will guarantee not only the success of the human resource plans implemented but also their relevance.

5.11 Trends in the Labour SupplyWithin the population of a country, people above a certain age are considered to be in the labour force. Of these, adefinitenumberareinemployment,thebalancebeingunemployed.Theageatwhichpeopleareconsideredtobe active in the labour force differs from country to country. The percentage of the number of people in the labour force to the total number that are eligible to be in the labour force also therefore varies from country to country. A rangeoffactorsinfluencethelabourforceparticipationofthepeople.Someofthesearedemographicfactorswhilethe others relate to economic and social conditions which vary ever so often in many countries.

5.11.1 Changes in the Composition of the PopulationIsitalrighttobecomfortablewiththefactthatlaboursupplyofacountrycansignificantlyvarywithdemographicchanges taking place over a period of time? For instance, a decline in the birth rate of a population means that, as these age cohorts reach the age of being considered part of the labour force, the number of young entrants into the labour market will decline. Therefore, the labour force participation rate depends to some degree on the demographic composition of the population at any given point of time. When HR planners look at these data, the past labour force data too are essential as the behaviour of the labour force discloses certain trends that allow planners and policy makers to make projections. For most countries, participation rate for men is higher than for women and people between the ages of 25 and 54 participate at higher rates than those younger and older. As mentioned above, considerable changes in population policies may lead to rise or fall in the birth rate and that will have an impact on the participation rates.

5.11.2 Subgroup Participation ChangesWith greater levels of literacy and policies ensuring equal employment opportunities, more women are coming into the labour market therefore signaling a marked change in the participation rates. There have also been changes in participation rates of a variety of age cohorts. In many developing countries a large number of young people look for employment and this number has been on the increase.

Likewise, in many countries where there was a decline in birth rates during the 70s and early 80s, their labour force will be ageing (e.g., Japan and the Peoples Republic of China).

5.11.3 Labour Force QualityBy examining the labour statistics of one’s country one can notice that over a period of twenty years, participation ratesofdifferentagegroupsinthelabourmarkethavechangedsignificantly.

5.11.4 Level of EducationWith greater educational opportunities, there have been great strides in the educational accomplishment of those entering the labour market. More high school and university graduates are coming into the labour market. This has an impact on those who are holding certain jobs. As the educational attainments of those who enter the labour market increase, those having lower levels of education and previously holding jobs in the labour market will be susceptible.

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5.11.5 Women in the Labour ForceIn current years, there has been a considerable rise in the participation rates of women in the labour market. If you examine your country’s labour force statistics for the past two decades (1980s and 90s) this will be apparent. In general, the number of married women in the labour force also has increased. Equal employment opportunities and greater access to education have been two reasons adduced for increased contribution of women in the labour force.

5.11.6 The Older EmployeeIn order to guard the older worker, countries like the United States have adopted age discrimination legislation that definesanolderemployeeasonebetweentheagesof40and65.IntheUS,roughlyabout23percentofthelabourforce presently is in this category. The section of the labour force is protected because some employers hold negative stereotypesaboutolderworkers.Therefore,employersmayfindithardtoaccommodateolderemployees,firstlybecauseofsuchnegativestereotypingbutalsobecausemorequalifiedyoungerpersonsareobtainableinthelabourmarket. Another reason for employers’ negative attitudes towards older employees is the supposition that because theemployeeisolderheislessqualifiedandlesscapabletoadjust.

5.11.7 Handicapped Workers in the Labour ForceThere are increasing numbers of employees entering the labour market with different physical disabilities. It is observed that employers nowadays are more accommodating than they were a decade or two ago, in employing handicapped persons. This is partially due to the legislation mooted by UN and allied agencies to provide some relief tothehandicappedinthelabourmarket.Manygovernmentshavepassedlegislationprovidingaspecificpercentageof employment opportunities to the disabled and handicapped. The entry of handicapped persons into the labour market has seen substantial changes in the facilities that the employers have had to provide to their work forces.

Evenwithlegislationprovidingforsuchemployment,manyhandicappedpersonshavehadimmensedifficultyfindingemploymentofanykindbecauseemployersandfellowworkersbelievethattheycouldnotdothejoborwould cause an extreme number of accidents. Also, as mentioned earlier, employers fear that it will be costly to employ handicapped workers because infrastructure requirements, such as layout changes, special work-stations, ramps to replace or in addition to stairs, provision of special toilets and other such special facilities necessitate high direct costs, and higher rates of compensation and insurance.

It is important to start perceiving handicapped workers as an asset rather than a liability. It is in the interest of one’s country’s economy that they should be perceived so because then one transform them from being a nation’s liabilities to assets. In general, it is also important to the affected individuals to be able to attain employment and thus attain economic and psychological freedom and independence.

5.11.8 Part-time and Full-time Time WorkPart-time work had increased during the 1980s. Generally, a part-time worker is a person who works less than the normal rate of 40 hours a week (or whatever the country’s norm is). To understand well the notion of part-time work, one has to draw a difference between voluntary and involuntary part-time employees. A person who is working part-time because he/she cannot get full-time employment is willingly a part-time employee for whom the position means something different than to a coworker who wished for a part-time assignment.

The major groups of part-time workers are:Women: Conventionally, with the responsibilities of running homes and child rearing, more women have •preferred to work part-time. Additionally, some experts have found that more husbands would rather have their wives work part time than full-time.Student: In developed countries such as the US and UK, a large number of students between the ages 18–24 •enrolled in higher education institutions work part-time. In the US, on the average students work 20 hours a week.Retired and older persons: In order to keep active and to complement any retirement income or social security •payments, a number of older citizens work part-time. Most of these persons are greatly skilled and could serve


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as training resources to new recruits.Persons with a physical or mental disability: Part-time work is often more suited for handicapped and disabled •persons. In some particular disabilities, only part-time work enables individuals to work without aggravating their disabilities.

While most part-time work is in the service industries, there are also numerous opportunities in the retail and wholesaletradesandinmanufacturing.Inagreatnumberofconditions,therearemanybenefitsinpart-timeworkforemployees,suchasflexibilityinscheduling,abilitytospendmoretimewiththeirfamilies,additionalcompensationand stabilisation of employment. However, for employers, there are also certain disadvantages, such as part-time work requiring additional training and record keeping expenses, lack of protection from trade unions etc. Trade unions at times resist the use of part-timers, viewing them as robbing work opportunities from additional full-timers who would become their members.

5.12 Trends in Labour DemandIt is the consumer that determines the demand for labour in any industry. The labour is employed to produce either goods or services. From time to time consumers change their preferences, and the volume of demand for particular products and services also changes, directly affecting the demand for labour.

To understand this phenomenon well, let’s take the case of robots or programmable mechanised systems in manufacturing. The cost of robots over a period time has become reasonable and some of the manual work in many industries is now being handled by such equipment, for example, welding, painting and other assembly operations in automobile manufacturing. This has had an intense effect on the demand for labour in the new plants in certain industries.

5.12.1 Implications for Personnel/HR ActivitiesIf you are engaged in personnel or HR activities in your organisation you would realise that major trends in the supply and demand of labour concern you. The reason should be clear to you. When there are changes in the supply and/or demand, there are opportunities as well as possible problems. In many countries, low birth rates are causing distress among HR professionals. There will be a death of young persons in the labour market. At the same time, high levels of education increase the expectations of people. Therefore, certain categories of labour, such as non-skilled manualworkers,wouldbeinshortsupply.TheHRpersonnelarecalledupontofindsolutionstoproblemsofthisnature.Asobservedearlier,therearemanyfactorsinfluencingthenatureofthelabourmarketandHRpersonnelwill have to be cautious to address some of the emerging issues.

5.12.2 Succession PlanningItisbasicallyaplanforidentifyingwhoispresentlyinpostandwhoisavailableandqualifiedtotakeoverintheevent of retirement, voluntary leaving, dismissal or sickness. A typical succession chart includes details of key management references to their probable successors.

Succession planning is a planned strategic activity in an organisation. As such it should be managed not as a year roundactivitybutasayearroundguide.Itisirrationaltoexpectthatwhenakeypositionopens,itwillbefilledby the chosen successor and things will progress from there. A succession plan, like all other plans, is just a plan. A plan is a set of intentions based on a set of assumptions at a given time. With time, both the assumptions and the intentions may vary, given new information. In organisations today, actual succession decisions are made as the need arises based on the latest information that includes, but is not limited to, the succession plan. Succession planning should offer a framework in which to make everyday decisions it should not provide the absolute decisions. Withthisunderstanding,managersshouldredefinetheirexpectationsofsuccessionplanningandvisualiseofitasa strategy.

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5.12.3 Assessment CentresWhen job vacancies are projected, several policy decisions must be made. A basic one involves the applicable candidate pool. Assessment centres provide a means of methodically gathering and processing information concerning the promotability (as well as the development needs) of employees. Such centres provide a more all-inclusive approach to selection, incorporating a variety of assessment techniques.

Some of the salient features of assessment centres are as follows:Those assessed are usually lower to middle level managers.•Multiple predictors are used, at least some of which are work samples (for example, in-baskets, leaderless group •discussions).The focus of the assessment centre is on behaviour.•Exercises are used to capture and create the key dimensions of the job. These involve one-to-one role-plays and •group exercises. The assumption here is that performance in these simulations forecasts behaviour on the job.Assessments are made off-side to ensure standardised conditions.•A number of people (raters) are used to assess or rate the candidates. They are carefully trained and their ratings •are made using standardised formats. Using multiple raters enhances the objectivity of assessments.Raters must reach agreement on those being assessed wherever possible.•Final reports may be used to make decisions about both internal selection and employee development, although •assessment centre results are rarely the only input in either area.Assessmentcentresarecostlytorun,butthebenefitshavethepotentialtoovershadowthesecostsbyasignificant•margin.

Considerable research has been conducted to determine the reliability, validity, and fairness of the assessment centres (unlike other promotion predictors). Most has been supportive, inter-rater reliability is generally high, as havebeenthevaliditycoefficients.

Althoughthecostsofrunningassessmentcentrearehigh,theycanproviderealbenefits,indicatingthedegreetowhich candidates match the culture of the organisation. Assessment centres are most suitable when candidates who arebeingconsideredforjobswithcomplexcompetenceprofiles.Awell-operatedcentrecanaccomplishabetterforecast of future performance and progress than judgments made by line or even personnel managers in the normal, unskilled way.

5.12.4 Employee Replacement ChartIn an employee replacement chart, the basic information provided is a hierarchical illustration of the positions within an organisation and the names of their current holders. Also indicated are those who are candidates for promotion to each position. Present performance is indicated along with the age of each person and through a coding system each employee’s promotion potential is also indicated.

Inacustomarysense,staffingplanningattemptedtoresolveanorganisation’sneedforhumanresourceswiththeavailable supply of labour in the local and national labour market. In many organisations, specialist units within personneldepartmentsmaybeestablishedtofocussolelyonstaffingplanning.InthepresentsearchofHRM,manyorganisationsappeartobereplacingstaffingplanningwithemploymentplanning,thepersonnelprocessthatattemptsto provide adequate human resources to achieve future organisational objectives. All organisations perform HR or employment planning, informally or formally. The major reasons for formal HR planning are to achieve more satisfiedandmoredevelopedemployeesandmoreeffectiveequalemploymentopportunityplanning.

HRM theory recognises that the HR department should be a fundamental part and member of the business strategy-making body. As time passes, working environment changes internally as well as externally. HR plans depend greatly on forecasts, expectations, and expectation of future events. Planning involves developing alternatives and emergencyplans.Anumberoffactorswillinfluencewhatisrequiredofforecastingtoguaranteesatisfactoryfuture


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staffing.Plannershaveachoiceofemploymentforecastingtechniquesofdifferentlevelsofsophisticationtofocusonboththeinternalconsiderationsandtheexternalfactorsthatinfluencethefinaloutcomeofthestaffingplan.However,onlyafeworganisationspracticethemosttheoreticalandstatisticallyrefinedtechniquesforplanning,forecastingandtrackingofemployees.Instaffingplanning,themanagerisconcernedwiththenumericalelementsof forecasting, supply-demand matching and control.

HRplanningisdefinedasalong-term,strategicplanningofhumanresourcesconcernedmorewiththedevelopmentofskill, quality and culture change than statistical numerical forecasting, succession planning and hierarchical structure. Thetermlabourmarketreferstothelargenumberofvaryinginfluencesandactivitiesinvolvinglabourdemandandsupply, which, they greatly depend on economic conditions. From the organisation’s perspective, the numbers and types of employees required during a given period mirror the relative demand for labour. The age at which people areconsideredtobeactiveinthelabourforcevariesfromcountrytocountry.Amultiplicityoffactorsinfluencesthe labour force participation of the people. Part-time work has increased for decades. To appreciate well the notion of part-time work, we have to draw a distinction between voluntary and involuntary part-time employees.

If you are engaged in personnel or HR activities in your organisation you would realise that major trends in the supply and demand of labour concern you. Succession planning is a strategic activity in an organisation. A succession plan, like all other plans, can change as its determinants change. Many companies are now engaged in wide-ranging career management programmes comprising the three major components: planning, development and counseling. A typical career planning involves four major steps. Career development is the process through which the action plans are determined. Career development, therefore, is of consequence for both individual and organisation and for human resource development.

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SummaryToday’sdynamicandfastchangingenvironmenthasgivenrisetoflatterorganisationalstructures.•Self-managedworkgroups,which focusonproviding superior services andproducts that provide specific•customer demands are the realities of today.Performance measures are established to assess and constantly improve processes with inappropriate processes •being abolished and new ones being evolved continuously.Social, economic, organisational and technological changes have an impact on the work-related/occupational •structures at the workplace.A progressive shift from blue-collar jobs is taking place both from the service as well as manufacturing sectors •to white collar jobs mainly in the service sector.General workers are using lesser manual skills because advanced machines at their disposal make greater •demands on their mental skills.Soft skills to improve customer interfaces are of immense value, since service is more at a modular than at a •component level.It is very important that planners endeavour to generate a culture that enables smooth technological and process •transitionsandmakesanorganisationflexibleandadjustable.Strategies for hiring, training and re-training the workforce should revolve around the broad-based skills required •foraparticularjobgroup,ratherthanaroundspecificoccupations.Highly culture-driven organisations have employees who work for the enterprise because of the association of •values, beliefs and objectives and an acceptance of all the related processes and systems.Attractive compensation plans coupled with demanding work and is satisfying work culture is a formula for •attraction and retention.A good performance appraisal system should focus on the developmental facet of an individual, rather than the •evaluation facet.A reason for the restricted success of appraisals is because of the tendencies of managers to evaluate the potential •of an employee rather than performance.ThesuccessofanyHRplanningprocessliesingivingsufficientleadtimetorecruitersinselectingtheright•persons who will perform well.Empowering managers by decentralising the decision-making process is the ‘key’ in today’s aggressive and •competitive situation.Relocation is not rare in the new competitive background, where business necessities often require an enterprise •to relocate employees from one city to another.With greater levels of literacy and policies ensuring equal employment opportunities, more women are coming •into the labour market therefore signaling a marked change in the participation rates.While most part-time work is in the service industries, there are also numerous opportunities in the retail and •wholesale trades and in manufacturing.Assessment centres provide a means of methodically gathering and processing information concerning the •promotability (as well as the development needs) of employees.

ReferencesBhattacharyya, D., • PerformanceManagementSystemsandStrategies. Pearson Education India.Sahu, R.K., 2009. • PerformanceManagementSystem, Excel Books India.2012. • How to boost labor supply and demand. [Video online] Available at: <http://www.youtube.com/watch?v=YU0NBVuUuaI> [Accessed 22 July 2013].2010. • WhatisOrganisationalCulture?WhyCultureMatterstoYourOrganisation?. [Video online] Available at: <http://www.youtube.com/watch?v=Rd0kf3wd120>[Accessed 22 July 2013]


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EmployeeCompensationandBenefits.• [Pdf] Available at: <http://122.166.126.42:8080/collect/projectr/index/assoc/HASH01ae/414fe22c.dir/doc.pdf> [Accessed 22 July 2013].Organisational Culture.• [Pdf] Available at: <http://uir.unisa.ac.za/bitstream/handle/10500/1133/03chapter2.pdf> [Accessed 22 July 2013].

Recommended ReadingBell, D.J., 1974. • Planning Corporate Manpower. Longman Group Ltd.Peters, T., 1993. • Liberation Management: A Fawcett Combined book. Balantine Books.Elliot, V. & Orgera, A., 1993. • Competing for and with Workforce – 2000. HR Publication.

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Self AssessmentToday’sdynamicandfastchangingenvironmenthasgivenrisetoflatter__________structures.1.

organisationala. globalisedb. performancec. compensationd.

__________workgroups,whichfocusonprovidingsuperiorservicesandproductsthatprovidespecificcustomer2. demands are the realities of today.

Multiplea. Performanceb. Organisationalc. Self-managedd.

__________and beliefs evolved by the enterprise would have their spotlight on people and the market in order 3. to sustain over a long period.

Informationa. Performanceb. Valuesc. Culturesd.

Which of the following statements is false?4. General workers are using lesser manual skills because advanced machines at their disposal make greater a. demands on their mental skills.Performance measures are established to assess and constantly improve processes with inappropriate processes b. being abolished and new ones being evolved continuously.Anumberoffactorswillinfluencewhatisrequiredofforecastingtoguaranteesatisfactoryfuturestaffing.c. Moderntrendshavegivenwaytonewoccupations,andnewdefinitionsofworkarematerialising.d.

Attractive __________plans coupled with demanding work and is satisfying work culture is a formula for 5. attraction and retention.

marketa. compensationb. moneyc. demandd.

Employees at all levels need to attain broader skills and capabilities in order to adjust to new __________and 6. work organisations.

technologya. work forceb. managersc. consumersd.


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Which of the following statements if true?7. Part-time work has decreased for decades.a. Full-time work has increased for decades.b. Part-time work has increased for decades.c. Less work has increased for decades.d.

A good performance appraisal system should focus on the ____________facet of an individual, rather than the 8. evaluation facet.

businessa. dynamicb. performancec. developmentald.

______________centres are most suitable when candidates who are being considered for jobs with complex 9. competenceprofiles.

Assessmenta. Strategicb. Employeec. Developmentd.


Values and beliefs of the 1. candidates

The basic information provided is a hierarchical illustration of the A. positions within an organisation and the names of their current holders.

Rewards 2. Should be in agreement with that of the organisation.B.

Culture 3. Should provide one-time achievements and be short-term in nature C. rather than long-term salary increases.

In an employee 4. replacement chart This is really a way of life for an organisation.D.

1-A 2-C ,3-D ,4-Ba. 1-D 2-C ,3-A ,4-Bb. 1-B,2-C ,3-D ,4-Ac. 1-B 2-C ,3-A ,4-Dd.

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Chapter VI

Job Analysis

Aim


introduce job analysis•

explain the process of job analysis•

explore the uses of job description•

Objectives


explicatejobspecification•

enlist methods of collecting information•

elucidate the steps in the job analysis process•

Learning outcome


analysethesignificanceofjobanalysistoorganisations•

identify the methods of collecting information•

understand the relationship of job analysis with job description•


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6.1 IntroductionOrganisation is expressed as a rational coordination of the activities of employees through division of labour, responsibility, authority and accountability. Built in this description is the realisation that organisations carry out a series of activities and that to perform these activities different kinds of skills are required. Each activity carries its own set of responsibilities and the employees are given suitable right to perform these activities. Not only this, they are also responsible to the organisation through their immediate supervisors for achieving these activities according tospecifications.Hence,alucidunderstandingofwhattheyaresupposedtodobecomesaprerequisiteforefficientutilisation of organisational resources. Job analysis helps us to reach this objective.

6.2 Job AnalysisThere exists a broad range of job evaluation methods. The option of an evaluation method is dependent on the number and kind of jobs to be evaluated, the cost of the operation, available resources, the scale of accuracy required and the organisations’ environments- both internal and external. However, whatever be the chosen method, methodical gathering and analysis of information about jobs is a prerequisite. The job analysis method involves assembly of such information. Job analysis is the process by which data, with regard to each job, is methodically observed and noted. Itprovidesinformationaboutthenatureofthejobandthecharacteristicsorqualificationsthataresought-afterinthe jobholder. The data from job analysis could be used for a range of purposes. The job analysis study endeavours to present information in seven basic areas:

JobIdentificationoritstitle,includingthecodenumber,ifany.•Distinctiveor significantcharacteristicsof the job, its location setting, supervision,union jurisdiction, and•hazards and discomforts, if any.Whatthetypicalworkerdoes:Specificoperationsandtasksthatmakeuptheassignment,andtheirrelative•timing and importance; the simplicity, the routine, or intricacy of tasks, responsibility for others, for property, or for funds.The materials and equipments used by the workers: Metals, plastics, grain, yarns; and lathes, milling machines, •electronic ignition testers, corn huskers, punch presses, and micrometers are descriptive.The workers’ job performance must be taken into account. The importance here is on the nature of operations, and •may spell out such operations as handling, feeding, removing, drilling, driving, setting up, and many others.Aspects like experience, training apprenticeship, physical strength, coordination or dexterity, physical demands, •mental capabilities, aptitudes, and social skills are some attributes.Working conditions and work environments is a major contributing factor in the performance of the job, and •the satisfaction of the employee.

Afaintlyhighlighted,poorlyventilatedandcrowdedplaceofworkhampersefficiency.Theworkersareforcedtospend more energy to complete tasks, which they can do, in much lesser efforts in otherwise conditions. Poor working conditions have been found to cause greater fatigue, negligence, absenteeism, indiscipline and insubordination among the employees. Each of these pieces of information is necessary; it is not enough to simply list a series of tasks or duties, because each piece of information is used in determining the level of work and responsibility and the knowledge, skill and abilities needed to perform them to a satisfactory level of expertise. The process of assembling and recording information on such essential characteristics of jobs is known as job analysis. In other words, jobs are subject to analysis to discover precisely what the duties, responsibilities, working environment and other requirements of a job are and to present these in a clear, concise and systematic way. Job analysis should be assumed by trained job analyst working in close collaboration with managers and jobholders. Before proceeding further, certain terms used in job analysis and related stages in the job evaluation process need to be elucidated.

ElementThis is the smallest unit into which work can be divided.

TaskThisreferstoadistinctiveidentifiableworkactivity,whichconsistsofalogicalandnecessarystepintheperformanceof a job.

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DutyThis is a noteworthy segment of the work performed in a job, usually comprising several tasks.

Post (or)This refers to one or more duties, which require the services or activities of one worker for their performance.

JobThis refers to a group of posts that are alike or involve considerably similar tasks.

OccupationA group of jobs similar in terms of the knowledge, skills, abilities, training and work experience required by workers for their successful performance denotes occupation.

6.3 Some ConsiderationsJob analysis might give the thought that while identifying components of job, we are looking at everything that concerns the job. However, in analysing the job, following considerations must be kept in mind:

Job analysis is not a one-time activity. Jobs are changing continuously. What a job was yesterday is not the •same job today and would not remain the same in future. These changes are caused by altering technology, competition,changingprofileoftheworkforce,changingexpectationsofendusersandahostofotherfactors.Hence, analysis must be always done to renew the nature of job.The Job and not the person—an important consideration in job analysis is conducted of the job and not of the •person. While job analysis data may be collect from incumbents through interviews or questionnaires, the product oftheanalysisisadepictionorspecificationofthejob,notadescriptionofthepersondoingthejob.All activities relating to job analysis give us only the minimum requirements of the job. No analysis can recognise •eitherthefinalorfullandcompleterequirements.Whatitdoesisthatitmerelyhighlightswhatareminimumactivitiesthatareentailedinajob.Thereasonissimple.Noonecanpredictthefinaloutcomebecauseofchangestaking place in the nature of job.

6.4 Method of Collecting InformationThere are numerous ways in which information about a job can be collected. In order to have a total understanding of the job contents, a number of sources should be looked at. By and large, the following sources are usually used. Inallthefollowingthreemethods,confirmationoftheinformationcollectedfromtheholderofthejobisessential.Very frequently, while collecting information people tend to describe those aspects of the job that they are not doing or would like to do. Hence, after the information has been collected from the employee, an interview with immediate supervisor must be conducted to validate the authenticity of the information.

6.4.1 Job QuestionnaireTo begin with, a job questionnaire could be administered to all concerned employees asking them about the job, itsvariouscomponents,timespentoneachofthem,andsoforth.Thefinishedquestionnairecouldbegiventothe supervisors for their comments. In some cases, job-reviewing committees are formed, consisting of union representatives and specialists from the personnel, work-study, or industrial engineering department. The questionnaire has the following advantages:

First of all, it is the most cost effective method, since it can bring out information from a wide number of workers •and their immediate superiors in a moderately short period of time. The main task of the analyst becomes one of planning the questionnaire well and checking the responses provided.Secondly, workers take an active part in completing the questionnaire providing intimate detailed knowledge •of their jobs, which is not available elsewhere.Thirdly, the questionnaire has to be structured in advance, and this facilitates the processing of the results.•Insomecases,oncetheresponsestothequestionnairehavebeenverified,theycansuitablybeusedwithlittle•further processing to put in order a job description.


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The questionnaire method however has the following disadvantages:To begin with, the people required to complete it must have a certain level of education; and even then, questions •may be understood in diverse ways so that the answers may be beside the point.In addition, not everyone is able to express fully and precisely the task that constitute their job. One may, for •example, over-emphasise some features of it and completely ignore others when they are important.There is less risk of this with a detailed questionnaire that includes a checklist of points, questionnaire suited to •all jobs is not easily drawn up and may be unduly long. In practice, while a well-structured questionnaire can get vital information quickly, it is almost impossible to get complete comparable information exclusively by questionnaire, and this method is generally used in combination with interviews and direct observation.

6.4.2 InterviewIn practice, an interview is nearly always necessary in order to get precise, complete and comparable information. The interview conducted by the analyst is an effective way of checking on the information previously available on job. The analyst asks the jobholders questions on the duties and main tasks of their job, usually working from a previously prepared list of questions as with a questionnaire. After the interview, the analyst draws up a report, which is shown, to the jobholder and his immediate superior for their approval. The analyst generally drafts the report in theformofajobdescription,whichefficientlyspeedsupthefoundationworkofjobevaluation.

Following are some of the disadvantages of this method:Interviews are time consuming. At least an hour or two may be required for each case, plus the time spent by •the analyst in drawing up his report and by the jobholder and his immediate superior in checking it. In a large enterprise a team of analysts would be necessary.Themaindifficultyoftheinterviewliesinfindinghighqualityanalystswhocanwinthejobholder’sconfidence.•As has been noted, “too many imagine interviewing to be relatively simple whereas nothing could be farther from the truth.” Obtaining information from a jobholder about his job is tricky.Many workers show a natural disbelieve of the analyst who comes to check their work, while others will give •a lot of information, much of it useless. It is accordingly important to have a well trained and experienced team of analysts if the interview is to be the only method used.

However interview has some advantages:Interview does provide in-depth information, which cannot be achieved through any other method.•It also helps in collecting data about tasks that are not part of the job and yet the jobholder has to do it.•Atthesametimeitcanalsohelpinfindingwaysandmeanstosimplifysomeoftheoperationsinvolvedinthe•job.

6.4.3 ObservationForjobsofasimpleandrecurringnature,theobservationtechniquecouldprovidesufficientinformationonthejob being performed. A lucid picture may be obtained regarding the working conditions, equipment used, and skills required. Although all jobs could be usefully observed, this technique alone is not enough for more complex jobs, especially those that have many components or interactions.

Some advantages of this method are:It is most appropriate for simple and repetitive jobs. •Direct observation by the analyst can clear up points left unclear by other methods.•

At the same time, some of the disadvantages of this method are:The presence of analyst causes stress. The workers may have an aversion to being observed.•The jobholders may deliberately reduce the pace of activity to validate overtime.•Observation cannot be a suitable method where the job calls for considerable personal judgment and intellectual •ability.It may not take into account all the tasks in a work cycle stretched over a week or a month.•

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6.4.4 Independent ObserversIn addition to the employees themselves providing information about the jobs they are doing, trained observers could also be used to complement the employees’ data and to discover inadequate performance in “crucial tasks”, which would lead to job failure. In addition there are some not so often used methods of job analysis. Some of them are presented here:

Diary: One or more incumbents are asked to keep a diary of duties noting the incidence of the tasks performed. •These diaries then become the base for doing job analysis.Critical incidents: Ask one or more incumbents to brainstorm (if there is only one person you will have to •participate in the brain storming) about critical incidents that happen routinely and rarely while working. Separate these into two lists. Generate one list of incidents indicating good or excellent performance and one, which indicates poor performance. This approach is excellent for determining training and selection strategies. The results lend themselves to meeting bias complaints concerning selection choices where the person chosen clearly possesses the skill and awareness to execute the most critical duties demonstrating success on the job. The analyst will have to extrapolate a list of duties to be performed from the incidents.Photo tape recording of job performance: This is a good approach because it can be watched over and over •again to carry out analysis and because it can be pulled out later to re-evaluate. Having such a tape is excellent source for undertaking job analysis.Review of records: Records of work such as maintenance requests is assessed and a list of requested repairs is •made. In this situation it is central to take representative samples so that seasonal variations in work requests do not misinform. This is a good approach for such jobs as mechanic or electrician. The kinds of repairs being performed and, thus, the duties being performed most often can be itemised. However, this approach could also be used for computer programming and computer trouble-shooting jobs in which incumbents have records of work requests or work competed.

The data to be gathered by all these methods is dependent in large part on the purpose the analysis is to be put to. Information about training needs requires information about the deal of the work so that the trainer can conclude the critical skills and knowledge that must be improved. Selection decisions necessitate the same information usually on a wider scale. A lot of information can be concluded from well-written task statements.

Some of the examples of the kind of data, which can be gathered for job analysis, are given below.List of tasks•List of decisions made•Indication of results if decisions are not made properly•Amount of supervision received•Supervision exercised•Kind of personnel supervised•Diversity of functions performed by supervised staff•Interactions with other staff (description of the staff interacted with)•Physical conditions•Physical requirements (For instance how heavy are the objects that are lifted. How much stooping and bending •is conducted and under what conditions)Software used•Programming language used•Computer platform used•Interpersonal contacts with outsiders (customers)•Interpersonal persuasive skills or sales skills•Amounts of mental or psychical stress•


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Necessity to work as a team member•Needed contributions to a work group•Authority or judgment exercised•Customer service skills•

Generally, it is preferable to use a combination of several methods to get information about the job. One method could well complement the other, where the objective is to achieve as much information as possible about the job, thecriticaltasks,andthenecessaryqualificationsrequiredtoperformthemadequately.Anobjectivedatagathererwould evade introducing his own ideas, and also avoid describing the employees performing the job, rather than the“job”itself,formanyoftheemployee’spersonaltraitsmayhavelittleornosignificancetothejob.

6.5 Job Analysis: ProcessTo be meaningful and useful for personnel related decision-making, job analysis must be carried more at regular intervals. Jobs in the past were considered to be stagnant and were designed on the basis that they would not change. While people working on these jobs were diverse, the jobs remained unchanged. It is now realised, that for greater effectiveness and productivity, jobs must change according to the employees who carry them out. Some of the major reasons leading such change are:

6.5.1 Technological ChangeThe rate of change in technology necessitates changes in the nature of job as well as the skills required. Word processing has radically changed the nature of secretarial jobs. Computerisation and mechanisation similarly give rise to new requirements of certain jobs while older requirements become outmoded.

6.5.2 Union- Management AgreementsThe agreements entered between management and the union can bring about change in the nature of job, duties and responsibilities. For example, under employees’ participation scheme, the workers are encouraged to accept broader responsibilities.

6.5.3 PeopleHuman beings are not robots; each employee brings with him his own strengths and weaknesses, his own style of handling a job and his own skills. There is a saying that the job is what the incumbent makes of it.

Therefore, the job analysis process must take into account the changing nature of job on account of the factors listed above. Often, role analysis techniques are used in dealing with the dynamic nature of job requirements.

6.6 Steps in the Job Analysis ProcessThe major steps to be followed in carrying out job analysis in an on-going organisation are given below:

6.6.1 Organisation AnalysisThefirststepistogetanoverallviewofvariousjobsintheorganisationwithaviewtoexaminethelinkagesbetweenjobs and the organisational objectives, interrelationships among the jobs, and the contribution of various jobs towards achievingorganisationalefficiencyandeffectiveness.Theorganisationchartandtheworkfloworprocesschartsmake up an important source of information for the purpose.

6.6.2 Uses of Job Analysis InformationDepending on organisational priorities and constraints, it is desirable to develop lucidity regarding the probable uses of the information pertaining to job analysis. In the previous pages it has been already indicated that such information could be utilised practically for all personnel functions. Nevertheless, it is important to focus on a few priority activities in which the job analysis information could be used.

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6.6.3 Selection of Jobs for AnalysisCarrying out job-analysis is a time-consuming and expensive process. It is, therefore, desirable to choose a representative sample of jobs for purposes of analysis.

6.6.4 Collection of DataData will have to be collected on the characteristics of job, the required behaviour and personal attributes needed todothejobefficiently.Severaltechniquesforjobanalysisareavailable.Careneedstobetakentouseonlysuchtechniques, which are satisfactory and reliable in the existing circumstances within the organisation.

6.6.5 Preparation of Job DescriptionThe information collected in the previous step is used in preparing a job description for the job highlighting major tasks,duties,andresponsibilitiesforefficientjobperformance.

6.6.6 Preparation of Job SpecificationSimilarly,theinformationgatheredinstep(4)isalsousedtoarrangethejobspecificationforajobstressingonthepersonalattributesrequiredintermsofeducation,training,aptitudeandexperiencetofulfillthejobdescription.

Job Analysis therefore carried out provides essential inputs to the design of jobs so that it is able to meet the requirementsofboththeorganisation(intermsofefficiencyandproductivity)aswellastheemployees(intermsofjobsatisfactionandneedfulfillment).Developingaptjobdesignisthentheproductofthejobanalysisprocess.

The most essential use of job analysis is to create a basic job description of what the job is to facilitate basic human resource problem solving. The second is to provide employees and supervisors with a crucial description of jobs describing duties and characteristics in common with and different from other positions or jobs. When pay is strongly associatedwithlevelsofdifficultythesedescriptionswillhelppromoteafeelingoforganisationalfairnessrelatedto pay issues. Other important uses of job analysis are given below:

Indicate training needs•Put together work groups or teams•Provide information to conduct salary surveys•Provide a basis for determining a selection plan•Provide a basis for putting together recruitment•Describe the physical needs of various positions to determine the validity of discrimination complaints•As part of an organisational analysis•As part of strategic planning•As a part of any human relations needs assessment•As a basis for coordinating safety concerns•

Job analysis is in reality an essential part of any modern human resource management system. The kind of information gatheredthroughjobanalysisvariessignificantlydependinguponthespecificusestobemadeofit.Consequently,jobanalysisprogrammesareusuallytailor-madeforthespecificpurpose.

6.7 Job DescriptionData collected for job analysis presents the basis for preparing job description. It refers to the job contents and the expectations that an organisation has from its employees. Job descriptions usually sketch out the minimum requirements of jobs for many reasons:

First, even with all the attempts, a perfect and fully all-encompassing job description is not feasible. In fact, as •one moves up in the hierarchy of an organisation, a detailed job description becomes very complicated.Secondly, most organisations would favour not to describe the job fully, if it is possible, because employees •would then stick to what has been described and would not do anything beyond it.


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Thirdly, if a job was fully described, regulation would automatically be taken care of by the duties performed, •making some of the duties of the supervisory staff outmoded.Fourthly, technology is changing fast and hence the nature of job is also changing. Unless an organisation •continuouslyupdatesthejobdescription,itwouldbedifficulttoscrutinisetheperformanceoftheemployees.

6.8 Design of Job DescriptionA key output or result of job analysis is job description. Information obtained by job analysis is shifted and recorded in brief, clearly and fully in the job description. The job description must accumulate all the essential elements of a job,suchasvitaltasks,responsibilities,qualificationsrequiredandthefunctionalrelationofthejobtootherjobs.

There is no commonly accepted standard format for job descriptions for the reason that the form and structure of the job descriptions must depend on the kind of work being analysed and the job evaluation plan being used. For example, if the job evaluation form comprises factors such as physical and intellectual effort, knowledge, skills, andresponsibilitiesandworkingconditions,itfollowsthatjobdescriptionshouldbeorderedtoreflectthesefactorsso as to make possible factor by factor comparison and evaluation of the jobs. With non-analytical methods, job descriptionmaybemoreflexibleandsimplerbutmostspelloutthetitleofthejobanditspositionintheorganisationsummarises the tasks performed and list the skills and abilities required. It is useful to follow the following guidelines when writing a job description:

Always be precise about what is expressed.•Omit expressions which are aspects— such as uninteresting, distasteful, etc.•Personal pronouns should be avoided— if it is necessary to refer to the worker, the word “ operator” may be •used.Do not describe only one phase of the job and give the notion that all phases are covered.•Generalised or ambiguous expressions, such as ‘prepare’, ‘assist’, ‘handle’ etc. should be omitted except if •supported by data that will explain them.Allstatementsshouldbeclearlydefinedandsimplysetdown-promiscuoususeofadjectivesonlyreflectsone’s•own opinion.Describe the job as is being done, by the majority of workers holding the designation.•Write in simple language— explain atypical technical terms.•Description of a job, which is part of teamwork, should create the team relationship.•The length of description is irrelevant; it is not expected even with printed forms that all job descriptions should •beofequallengthbutwritebriefly.Whenthejobanalystfindsthatthedatahehastoworkwithisinadequate,she/hemuststopuntilsufficientdata•is obtainable.Put the date of completion of each description and revise it as often as changes in jobs and occupation •require.Job description should have the agreement of the concerned supervisor.•Description should include the initials of the persons who accumulate them.•

6.9 Uses of Job DescriptionApart from being a basis for job evaluation, the job descriptions can be put to many uses. They are as under.

6.9.1 Supervisor- Employee CommunicationThe information contained in the job description charts out the work, which the incumbent is likely to perform. Hence, it is an exceptionally useful document for both the supervisor and the subordinate for purposes of communication. Furthermore, it helps employees to comprehend just what work their associates are expected to perform, thus, facilitating amalgamation of efforts at the work site by the employees themselves.

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6.9.2 Recruitment, Selection, Promotion, and TransferInformation relating to the knowledge, skills and abilities required to execute the work to a tolerable standard, can be used as a sound basis on which to base standards are procedures for recruitment, selection, promotion and transfer.

6.9.3 Work Performance AppraisalTo be sound and objective, a performance appraisal system must be ingrained in the work performed by the employee; such work is indicated by the duties in the job description. In such an approach, using each duty as the basis for discussion, the employee and the supervisor agree on work performance goals for the period to be covered by the consequent evaluation report; they also agree on the criteria to be used to determine the degree to which the goals have been attained. The reports resulting from this methodology minimise subjectivity by focusing attention on the job, as distinctive from the personality traits, habits or practices of the employee. As a result, the results are more realistic; valid and defensible than is the case in other types of systems.

6.9.4 Manpower Planning, Training and DevelopmentThesethreeprocessesarestronglyinterrelated.Thejobdescriptionshowing,inspecificterms,theknowledge,skilland ability requirements for effective performance of the duties, is a sound and balanced basis for each of these processes. Analysis of various types of jobs at increasingly more senior levels will point to logical sources of supply for more senior posts, as part of manpower planning. It will also show the gap to be bridged in terms of knowledge, skill and ability, thus providing a sound basis for preparing job- related training and development programmes.

6.9.5 Industrial RelationsOften,problemsariseintheindustrialrelationsfield,whichhavetheiroriginintheworktobeundertaken.Intheseinstances the job description may be used to form a factual basis for discussion and problem resolution.

6.9.6 Organisation and Procedure AnalysisThe duties and responsibilities outlined in the job description may be used to a huge advantage by management in analysing organisation and procedures, because they disclose how the work is organised, how the procedure operates and how authority and responsibility are appointed.

A Job Description should include a:Job Title: It represents a summary statement of what the job involves.•Job Objective or Overall Purpose Statement: This statement is normally a synopsis designed to familiarise the •reader to the general nature, level, purpose and objective of the job. The synopsis should illustrate the broad function and extent of the position and be no longer than three to four sentences.List of Duties or Tasks Performed: The list contains an item-by-item list of principal duties, continuing •responsibilities and responsibility of the occupant of the position. The list should contain each and every crucial jobdutyorresponsibilitythatissignificanttothesuccessfulperformanceofthejob.Thelistshouldbeginwiththemostimportantfunctionalandrelationalresponsibilitiesandcontinuedowninorderofsignificance.Eachdutyorresponsibilitythatcomprisesatleastfivepercentoftheincumbent’stimeshouldbeincludedinthelist.Description of the Relationships and Roles: the occupant of the position holds within the company, including •any supervisory positions, subordinating roles and/or other working relationships.


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6.10 Job SpecificationWorkloadanalysisaidsinidentifyingtheminimumqualificationrequiredtoexecuteaparticularjob.Thesemayinclude academic qualifications, professional qualifications, age, years of experience, relevance andnature ofprevious experience, and other skills and attitudes. They structure the minimum eligibility requirements, which the candidatemusthave,fortheappointmenttoajob.Alucidindicationofspecificationshelpsincreatingqualifiedapplications,becauseofself-selection.Thecandidateswhodonotownthosequalificationsdonotapply.Ontheotherhand,lackofclear-cutspecificationsmayproducealargenumberofapplications,leadingtohighcosts,interms of man-hours, in processing them. There is a great deal of disagreement with respect to developing entire and correctjobspecificationunlikethejobdescription,whichprovidesmoreobjectiveconsiderationofjobrequirements.The decision to indicate minimum human requirements for a job is a complex one as it involves sizeable degree of subjectivity and prejudice.

There is a general feeling that organisations usually tend to establish moderately high requirements for formal educationandtraining,resultinginasituationwherehighlyqualifiedpeopleendupdoingjobsofroutinenature.Predominantly,inIndia,highlyqualifiedpersonnelarerecruitedforjobswheretheirabilities,skillsandknowledgeareunderutilised.Evenwiththeseproblems,however,minimallysatisfactoryhumanrequirementsneedtobespecifiedforvariousjobsandcategoryofjobs.Theformatforjobspecificationshouldincludethefollowingitems:

Position Title•Education/ Training•Experience•Knowledge•Abilities•Skills•Aptitude•Desirable Attributes•Contra-indicators, if any•

6.10.1 From Job Analysis to Jobless WorldJobenrichmentmeansredefinitioninawaythatincreasestheopportunitiesforworkerstoexperiencebuildingofresponsibility, achievement, growth and recognition by doing job well.

Analysing together the job•Establishing client recognition•Vertical loading•Job-Sharing•Flexible job doing pattern etc.•Open feedback channels.•

Whetherspecialised,enlargedorenriched,workers’skillsgenerallyliketohavespecificjobtodoandthejobsrequire job descriptions. But in the emerging organisation today jobs are becoming more amorphous and harder to define.Inotherwordsthetrendistowards“do-jobbinginmanymodernorganisations.

Job analysis is the process of job-related data. The data collected will be useful for preparing job description and job specification.Jobdescriptionlistsjobtitle,duties,machinesandequipmentinvolved,workingconditionssurroundingajobandthelike.Jobspecificationliststhehumanqualificationsandqualitiesnecessarytodothejob.

Job analysis is valuable for HRP, recruitment and selection, training and development, job evaluation, remuneration, performance appraisal, personnel information and safety and health programmes. It also aids analysis of the organisation structures and the work systems/procedures and contribute towards improving the productivity and efficiencyoftheorganisation.Arationalordertojobanalysisisjobdesignwhichisnothingbutorganisationoftasks, duties and responsibilities into a unit of work.

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SummaryOrganisation is expressed as a rational coordination of the activities of employees through division of labour, •responsibility, authority and accountability.The option of an evaluation method is dependent on the number and kind of jobs to be evaluated, the cost of •the operation, available resources, the scale of accuracy required and the organisations’ environments- both internal and external.Job analysis is the process by which data, with regard to each job, is methodically observed and noted.•Afaintlyhighlighted,poorlyventilatedandcrowdedplaceofworkhampersefficiency.•Poor working conditions have been found to cause greater fatigue, negligence, absenteeism, indiscipline and •insubordination among the employees.Job analysis should be assumed by trained job analyst working in close collaboration with managers and •jobholders.Very frequently, while collecting information people tend to describe those aspects of the job that they are not •doing or would like to do.The analyst asks the jobholders questions on the duties and main tasks of their job, usually working from a •previously prepared list of questions as with a questionnaire.Information about training needs requires information about the deal of the work so that the trainer can conclude •the critical skills and knowledge that must be improved.An objective data gatherer would evade introducing his own ideas, and also avoid describing the employees •performing the job, rather than the “job” itself, for many of the employee’s personal traits may have little or nosignificancetothejob.Jobs in the past were considered to be stagnant and were designed on the basis that they would not change.•Carrying out job-analysis is a time-consuming and expensive process.•Data collected for job analysis presents the basis for preparing job description. It refers to the job contents and •the expectations that an organisation has from its employees.Withnon-analyticalmethods, jobdescriptionmaybemoreflexibleandsimplerbutmostspellout the title•of the job and its position in the organisation summarises the tasks performed and list the skills and abilities required.The information contained in the job description charts out the work, which the incumbent is likely to •perform.Information relating to the knowledge, skills and abilities required to execute the work to a tolerable standard, •can be used as a sound basis on which to base standards are procedures for recruitment, selection, promotion and transfer.Analysis of various types of jobs at increasingly more senior levels will point to logical sources of supply for •more senior posts, as part of manpower planning.Alucidindicationofspecificationshelpsincreatingqualifiedapplications,becauseofself-selection.•Jobenrichmentmeansredefinitioninawaythatincreasestheopportunitiesforworkerstoexperiencebuilding•of responsibility, achievement, growth and recognition by doing job well.

ReferencesFranklin, M., 2005. • AGuidetoJobAnalysis. American Society for Training and Development.Hartley, D.E., 1999. • JobAnalysisattheSpeedofReality. Human Resource Development.2012. • WhatistheDifferencebetweenaJobAnalysisandJobDescription? [Video online] Available at: < http://www.youtube.com/watch?v=uULVOWjfJPQ> [Accessed 22 July 2013].2012. • Why a Job Analysis is Necessary. [Video online] Available at: <http://www.youtube.com/watch?v=SWRaVp1PJf0>[Accessed 22 July 2013]


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JobAnalysis.• [Pdf] Available at: <http://www.prenhall.com/desslertour/chapter3.pdf> [Accessed 22 July 2013].JobAnalysis.• [Pdf] Available at: <http://www.ou.edu/faculty/M/Jorge.L.Mendoza-1/job-analysis-criteria-reliability-validity.pdf> [Accessed 22 July 2013].

Recommended ReadingAswathappa, A., 2002. • Human Resource and Personnel Management. Tata McGraw.Saiyadain, M. S., 2003. • Human Resource Management. 3rd ed., Tata McGraw.Peterson, T.T., 1972. • JobEvaluation:AmanualforPetersonMethod. Business Books.

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Self AssessmentJob ____________ is the process by which data, with regard to each job, is methodically observed and noted.1.

descriptiona. specificationb. analysisc. questionnaired.

In practice, an _________is nearly always necessary in order to get precise, complete and comparable 2. information.

informationa. abilityb. analysisc. interviewd.

___________analysisaidsinidentifyingtheminimumqualificationrequiredtoexecuteaparticularjob.3. Workloada. Organisationb. Jobc. Workd.

The information contained in the job ___________charts out the work, which the incumbent is likely to 4. perform.

dataa. analysisb. specificationc. descriptiond.

Job____________liststhehumanqualificationsandqualitiesnecessarytodothejob.5. dataa. specificationb. descriptionc. analysisd.

Job___________meansredefinitioninawaythatincreasestheopportunitiesforworkerstoexperiencebuilding6. of responsibility, achievement, growth and recognition by doing job well.

standarda. attributesb. enrichmentc. aptituded.

Which of the following statements is true?7. Carrying out job-analysis is a time-consuming and expensive process.a. Carrying out job-analysis is a time-saving and inexpensive process.b. Carrying out job-description is a time-consuming and expensive process.c. Carryingoutjob-specificationisatime-consumingandexpensiveprocess.d.


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Alucidindicationofspecificationshelpsincreatingqualifiedapplications,becauseof_____________.8. job enrichmenta. job-analysisb. records reviewc. self-selectiond.

Which of the following statements is false?9. Each activity carries its own set of responsibilities and the employees are given suitable right to perform a. these activities.InIndia,highlyqualifiedpersonnelarerecruitedforjobswheretheirabilities,skillsandknowledgeareb. underutilised.A key output or result of job description is job analysis.c. Data collected for job analysis presents the basis for preparing job description.d.


Word processing 1. It represents a summary statement of what the job involves.A.

Interviews 2. Has radically changed the nature of secretarial jobs.B.

Job title 3. This is a good approach for such jobs as mechanic or electrician.C.

Review of records4. These are time consuming.D.

1-D ,2-C ,3-A ,4-Ba. 1-B ,2-D ,3-A ,4-Cb. 1-B ,2-D ,3-C ,4-Ac. 1-A ,2-C ,3-B ,4-Dd.

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Chapter VII

Changing Nature of Roles

Aim


introduce role descriptions•

explain the need for role descriptions•

explore the changing world of work•

Objectives


explicate role expectations•

enlist the kinds of roles•

elucidate the factors leading to role changes•

Learning outcome


analyse the factors leading to changes needed in role description•

enumeratevariousapproachestoroledefinition•

understand the importance of roles •


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7.1 IntroductionThe perception of role and changes taking place in roles can best be understood in the framework of the expectations an organisation has with its employees. An organisation can be described as the balanced organisation of the activities of a number of people for the attainment of some common objective through division of labour, hierarchy of authority and accountability. Such a description highlights the following components of organisations:

Organisationsarerationalentities.Thismeansthattheyhaveevidentlydefinedgoalsandmosteconomicmeans•to achieve these goals. Rationality demands maximisation of returns on minimum investment.Organisational goals must be evenly understood, shared, and subscribed to by all the employees in the •organisation.Asinglepersondoesnotmakeanorganisation.Itrequiresaminimumoftwoormorepersonstofulfillthe•requirements of synchronisation coordination.One person cannot do all the roles of the organisation; therefore these have to be completed through division •oflabourandfunction.Eachindividualhasaclearlydefinedresponsibilitythatisnon-overlapping.Alongwithresponsibility comes the authority to complete the role.For every person in the organisation there is a direct supervisor. Subordinates are answerable to their immediate •supervisor. This is true for all the levels in the hierarchy apart from the very top-level employee who does not haveastructurallydefinedsupervisorandtheverybottomlevelemployeewhodoesnothavesubordinates.Giventhisgeneraldescriptionofanorganisation,rolesthatareclearlydefinedplayasignificantpartinaccomplishingthe goals of the organisation. Roles can be seen in a variety of ways.

7.1.1 Role and Role DynamicsA role is a set of expectations linked with a job or a position. When roles are uncertain or complex performance problem can occur. Role ambiguity occurs when someone is unsure about what is expected of him or her. To do any job; the people need know what is expected of them. Role clarity is vital for every member of the group, but that is more important for new members. Role ambiguity creates problems and the whole effort is either wasted or not appreciated. Expecting too much or too little may generate problems.

Role burden occurs when too much is expected and individual feels overloaded with work/responsibility. Role under load occurs when too little is expected and the individual feels underutilised therefore, a balanced and practical roleloadisexpected.Role–conflictoccurswhenapersonisincapableofmeetingtheexpectationsofothers.Theindividual understands what needs to be done but for some reasons can not conform. The resulting anxiety can reduce job satisfaction and this affects both work performance and the relationship with other group members. The commonformsofroleconflictare:

Intrasenderrole-conflictingwhichtakesplacewhenthesamepersonsendsincompatibleexpectations.•Intersenderrole-conflictoccurswhendifferentpeoplesendconflictingexpectations.•Person–Job–conflict-occurswhenone’spersonalvalues&needscomeintoconflictwithroleexpectations.•Interroleconflictoccurswhentheexpectationsoftwoormorerolesheldbythesameindividualbecomes•mismatched–suchasconflictbetweenwork&familydemands.

One way of managing role-dynamics in any group or work setting is the role negotiation. This is the course through which individual negotiate to elucidate the role expectation each holds for the other.

7.2 Role DescriptionWell-written role descriptions identify the work of the organisation and its reasons for existence as an employer of humanresources.Furthermore,theydefineandhelpquantifytherelativeimportanceofwork,whateachpositioncontributestoaprocessandtheorganisationasasumtotal.Thisdefinitiondemonstratesanessentialpointpertainingto role descriptions. Used in today’s work environment, they describe not only what the role is all about but also how it contributes to the work of the organisation. They explain the nature of the work to be done by stating the rationale and main responsibilities. They may also include information on the type of person who is best suited to perform the job. Role descriptions are a helpful resource. They have the potential to be a valuable organisational tool, however, to realise their potential they must be correctly monitored.

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Therearetwomaintypesofroledescriptions,thegenericorgeneralandthespecificorindividual.Genericroledescriptionsarewritteninwidelydeclaredgeneraltermswithoutidentifyingspecificresponsibilities,requirements,purpose and relationships. Some organisations use standard role descriptions for the same level within an organisation. Forspecificpositionsanextradutystatementmaybedeveloped.Specificroledescriptionspresentinformationonall important responsibilities assigned to the person performing the role. They are usually quite detailed and wide-ranging.

Following are some of the important ingredients of roles:A role description must be precise but not a minutely detailed list of an employee’s tasks and duties.•Role descriptions are meant to be a guide only staff must not deduce them rigidly or role descriptions become •an obstacle to success they are just a ‘map’ that shows direction.Roles may show the authority that the employee must be provided to achieve the role expectations.•Roles may also state the areas of accountability.•Roles accomplishment or otherwise may become the basis for rewarding or reprimanding the employees.•

7.3 Kinds of RolesInthelate1960s,agraduatestudentatMIT,HenryMintzberg,undertookawatchfulstudyoffiveexecutivestoconclude what they did in their jobs. Based on his observations of these executives, Mintzberg concluded that they execute ten highly different but interconnected roles, or sets of behaviours, attributable to their roles. These ten rolescanbegroupedasbeingchieflyconcernedwithinterpersonalrelationship,thetransferofinformation,anddecision-making.Thethreegroupsandspecificroleswithineachofthegroupsaregivenbelow:

7.3.1 Interpersonal Following three roles are included in this group:

Figurehead: Symbolic head, required to perform a number of routine duties of a legal or social nature;•Leader: Responsible for the motivation and direction of subordinates, and•Liaison: Maintains a system of outside contacts who provide favours and information.•

7.3.2 InformationalFollowing three roles are included in this group:

Monitor: Receives wide range of information; serves as nerve center of internal and external information of •the organisation;Disseminator: Transmits information received from outsiders or from other subordinates to members of the •organisation, andSpokesperson: Conveys the information to outsiders on organisational plans, policies, actions, and results; serves •as experts on organisation’s industry.

7.3.3 DecisionalFollowing four roles are included in this group:

Entrepreneur: Searches organisation and its environment for opportunities and commences projects to bring •about transformation;Disturbance handler: Responsible for remedial action when organisation faces significant, unforeseen •disturbances;Resource allocator: Making or approving noteworthy organisational decisions, and•Negotiator: Responsible for representing the organisation at main negotiations.•


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7.4 Need for Role DescriptionsAn exact and detailed role description is progressively becoming a central factor of the effective use of helpful human resources in libraries and other organisations. It is needed because of the following reasons:

Theprimaryfunctionofaroledescriptionisasacommunicationtool.Itefficientlycommunicatesagreatdeal•of information about a role, particularly between the manager and the employee.When employees have a road map to success they often execute much better and that translates into continued •business expansion for the organisation.They include reporting relationships; skill requirements;major responsibilities;where the rolefits into the•organisation and what is necessary of the position. This permits them to use the information in relation to many human resource functions such as recruitment, induction, training and performance management.Well-written role descriptions also provide information to potential employees about organisational expectations •ofaspecificrole.Thishelpsinattractingandretainingemployeeswhoknowaboutthecustomsoftheorganisationand what is expected of them.

7.5 Uses of Role DescriptionsRole descriptions have the potential to be used for a number of human resource functions. Some of these are given below:

Role descriptions may be used for selection and recruitment like, to advertise roles, screen applicants, develop •questions for the role interview and recognise essential and advantageous criteria.Role descriptions aid in induction and orientation and provide a good beginning and outline of the role, which •enables the employee to comprehend what the organisation expects of them.Roledescriptionsallowtheemployeetoseewheretheyfitintothelargerpictureoftheorganisation,andhow•their role contributes to the organisation.Role descriptions may identify preliminary training requirements for a new employee. If they are included in •a performance management system they may be used as a help in identifying training to improve performance or supplementary training needed as a result of varying responsibilities.Role descriptions are the basis for an effectual performance management system and are used in carrying out •performance reviews or role evaluations.Astudyofroledescriptionscanhelpemployeesestablishwhatqualifications,experienceandskillsareneededto•be relevant for different positions within the organisation. This information can then be used in career planning or development.

Additionally they can be used for the following purposes:Orienting new employees on what their subordinates and superiors do•Analysingworkflowsandmethods•Mentoring the employees•Dealing with industrial relations•Job restructuring•Organisational and personal goal setting•Conducting an organisational audit•Definingorreviewingorganisationalstructure•Measuring accurate salary administration•Quickly preparing substitute workers or temporary help.•

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7.6 Changing Roles: ApproachesOf late there has been an attempt to scrutinise role in a special manner. Much of this thinking has been the consequence of new light being shed on varying management practices: Some of these attempts are presented below:

7.6.1 Skill Behaviour MatrixBritishPetroleumreplacedroledescriptionswithamatrixreflectingskillsandbehaviour.Thismatrixfocusesonskillsand behaviours rather than individual roles. Each skill matrix explains steps in the career ladder, from the lowest to the highest, along the vertical axis. The horizontal axis describes the skills and competencies that are compulsory for each step. It is argued that skill matrices vary considerably from role descriptions. They denote roles and levels of performance rather than roles in a box. Through this system managers know what to expect of their employees and employees know what the organisation expects of them.

7.6.2 Configuration MatrixAnotherapproachlooksattheroledescriptionsbydefiningrolesintermsofa‘contributionmatrix’.Thismatrixidentifiesteamoutputsandcontributionmadebyeachmemberwithinateam.Decidedoutputsarewrittenalongthevertical axis and team members names along the horizontal axis. Under each output the processes and contributions made by each team member are listed. The output is then allocated to the person who has the overall responsibility. Following are some of the advantages of this approach:

It focuses on the whole department rather than the individual role,•It integrates team involvement,•It can be used to show use of resources, and•It is a good medium to identify enhancement opportunities.•

7.6.3 Other ApproachesOther than these approaches the shifts in some of the usual role responsibilities to more current descriptions are presented below:

There is a shift, from description of duties to description of responsibilities. Duties symbolise the methods by •which the responsibility areas are accomplished. Responsibilities are like mini-roles that must be carried out to get the total role fruitfully completed. In a quick changing work environment, responsibility areas usually stay constant whereas, duties change frequently with progress in technology and improvements in processes. Focusing on duties make it complex to keep a role description modern and does not embody the accurate nature of the role to be performed. When focusing on responsibilities it is central that these relate to meeting organisational objectives.The focus is on what the person is required to do and entails looking at the role from an inside out approach. •Nevertheless, when focusing on the end results it implies looking at the role from an outside-in approach. Focusing on end results helps employees realise why the work is important. Knowing the results also allows employees to notice new ways to realise results thereby encouraging initiative and resourcefulness.Earlier, the department wrote role descriptions with little or no input from the employee really doing the role. •Today’s role descriptions are typically written by the affected employees and managers. The department now provides a consulting role in the progress of role descriptions and their role is to show managers how to describe roles. This approach provides a more precise role description, as it is the employees and managers who have the best insight into the role and are conscious of the responsibilities and results expected. Employee participation in describing their roles also creates ownership.Role is not meant to list every duty an employee performs. However, in the past many roles included statements •such as and other duties and responsibilities that may be required on either a temporary or permanent basis. This allowed managers to change duties or add duties without discussing this with employees. In today’s organisations roles are marketed differently in that they are promoted to staff as a role summary outlining the key responsibilities, not all the duties that need to be performed. Changes to these responsibilities are discussed between the manager and employee.


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If roles are to be used as a career development tool they need to be accessible for all staff contained by an •organisation. Some organisations make them available on-line through their intranet. This often was not the case in the past where roles were only available to the person doing the role, their manager and senior management.Conventional roles were often described in a way that implied complete autonomy from other positions within •the organisation and were very distinctive in nature. It was not quite lucid how a particular role is related to other positions and processes within the organisation. This type of description supports independent rather than group action. Today roles need to mirror the interdependence of processes and persons within the organisation. If the organisation is based on teams and employees are expected to work together to achieve objectives and goals,thisneedstobereflectedintheroles.Roles were often only evaluated when a role became unoccupied or newer duties were added. In today’s work •environment roles are incorporated into the organisations performance management system in order to make certain they are reviewed often with the employee. This preserves currency, accuracy, application and usefulness of the role description.It was stated that roles are not a work schedule; nonetheless, in the past many indicated how much time is •spent on different tasks. In today’s work environment time percentages or frequency have been replaced with performance measures or indicators, which offer a clearer indication of what is expected from the role.

7.7 The Changing World of WorkWhen taking into account a career action one needs to review the changes happening at the workplace. Most employment environments are changing from what they have been once. Here are some of the repercussions of these changes for roles and careers.

Previously future was fairly predictable. Today there is less certainty and more vagueness in roles.•Earliertherewasamovetoaspecificjob.Nowthefocusisonmatchingoneselftoworkcontentsbasedon•one’s values.In the past there was an effort to carry prearranged tasks. Today there are repeated changes in the task and better •focus on teams working.There was a time of constancy in work situation. Today the needs of the organisations are always changing.•Traditionally having one job title was the prerequisite. Now there is a variety of roles and a person may execute •many functions.In the past employees joined one occupational stream and retired from the same. Nowadays, organisations are •persistingontransferringskillsintomanyworkfields.Previously change was evaded. Today change is embraced.•Earliercareersuccesswasdefinedbyothers.Todaythevalueofthejobisrealisedbyindividualemployee•himself/ herself.

7.8 Factors Contributing to Role ChangesGiven the altered situation there is a need to change and / or adjust the roles. Some of the chief factors contributing totheneedforchangearetechnology,informationprocessing,competition,changinggenderprofileofworkforceand varying culture.

7.8.1 Technology UpgradationTechnologycontinuestoadvancerapidlyofferingwiderchoices.Thereareveryrefinedmachinesthatprovidebriskoutput with zero defects. Manual work has been replaced by mechanisation. Machine upgradation is occurring at a very quick pace, and hence there is an insistent need to improve the skill level of the employees. They need to befrequentlysentfortrainingprogrammestokeepthemupdated.Manypersonsinaccountsstillcountonfingers,even though their roles have changed to using computers for accounts purposes.

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7.8.2 Information TechnologyToday a great deal of the focus is on Internet and World Wide Web. Information technology has brought a revolution in access, storage and recovery of information. Electronic mail is making it easier to seek direction and guidance from specialists around the world. Shift from printed information to electronic exposure has resulted in multimedia information service. None of these applications of information technology can be achieved without trainers and usershavingthefittingskills.Itwillthereforebecriticalnotonlytodevelopprogramtodeveloptheskillsofusers,but ensure that the information professional has the skills to be able to change roles. With the accessibility of high-speed networks, new services and applications, training becomes an even more burning issue.

On top of this there is a need for improvement of information and knowledge handling in the “subject content”. Content is king, without quality data any system is devoid of use.

7.8.3 CompetitionWith the globalisation and creating a world without border competition has become the force to reckon with. It has given boost to consumer preferences, better product quality expectations, and trustworthy service. Just about 20 years ago, there were only 2-3 models of cars. Today we have as many as 30-35 models accessible in the easiest possible way. Business executive cannot afford to live in their own world and sell whatever they produce. It is a buyers’marketnow.Theyhavetogetoutfromthecomfortsoftheiroffices,identifycustomers’preferencesandsatisfy them before they lose out in the competition.

7.8.4 Women in WorkTaking care of others is the most important role of women. Usually, women have tended the home. It was their responsibility, honour, and obligation to dedicate themselves to the young, the sick, and the elderly. Women were raised to be “good wives and wise mothers,” and still are. Yet there is a silent revolution going on. Women make up 40 percent of the labour force. More than half of all the married women work. Management positions held by womeninIndiahavedoubledascomparedtotenyearsago.Thisfigurestillrepresentsonlyabout1percentofallmanagement positions, as opposed to over 10 percent, as is the case in the United States. Moreover, women are detachingtheirtraditionallysubordinaterolesandusingthecourtstoaffirmtheirrights.Ifonegoesbythenumberofwomen students in professional courses, their number in workforce is going to enlarge. Hence some of the traditional roles have to be customised to suit the requirements of female workforce.

7.9 Role ExpectationsSome of the emerging role expectations are presented below:

Top leaders and managers must serve as learning roles models by sharing their own learning goals and by persuade •others to learn. They should also recognise the need for individual learning for all levels of employees.Individual employees have to acknowledge responsibility for their own careers and their own individual learning. •They should not wait to be taught nor expect the organisation to provide career paths.Learning and personal growth must be dynamically encouraged and rewarded. There must be incentives for •individuals to broaden their abilities.The “not invented here” disorder should not practiced by individuals. There should be regular inspection of the •internal and external environment for new ideas and trends that will bring about improvement and expansion.Employeesmustbeheldresponsiblefortheirperformanceandfinenessmustberewarded.•Procedures and policies must be in place to ensure continuing and timely reevaluation of changing job skill and •requirements.Rolesandjobrequirementsmustbescrutinisedfrequentlytopreciselyreflecttheworkbeingperformed or skills required.


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The idea of role can better be understood in the background of the expectations an organisation has with its employees.Asinglepersondoesnotmakeanorganisation;itrequirestwoormorepersonstofulfilltherequirementsofcoordination.Onepersoncannotdoalltherolesoftheorganisation.Eachindividualhasanoticeablydefinedresponsibility which is entirely unlike the others, along with responsibility comes the power to complete the role. Eachrolehasitswrittendescriptionsdefiningtheworkoftheorganisationanditsreasonsforbeing,asanemployerof human resources. There are different kinds of roles; these are interpersonal, informational and decisional. These roles can be grouped as being mainly concerned with interpersonal relationship. The role of description is needed asacommunicationtool;itefficientlycommunicatesagreatdealofinformationaboutarole,particularlybetweenthe manager and employee. Role descriptions have the potential to be used for selection and recruitment, induction andorientation,analysingworkflowsandmethods,jobstructuring,etc.

Roles will be changing from time to time according to existing situation. There is a shift from description of duties to description of responsibilities; when considering a career action one needs to assess the changes occurring at the work place. Most employment environments are changing from what they have been once. Some of the major factors contributing to the need for change are: technology, information processing, and competition, changing genderprofileofworkforceandchangingculture.Rolesandjobrequirementsmustbeexaminedoftentoaccuratelyreflecttheworkbeingperformedorskillsrequired.

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SummaryAn organisation can be described as the balanced organisation of the activities of a number of people for the •attainment of some common objective through division of labour, hierarchy of authority and accountability.Role clarity is vital for every member of the group, but that is more important for new members.•Role burden occurs when too much is expected and individual feels overloaded with work/responsibility.•Role–conflictoccurswhenapersonisincapableofmeetingtheexpectationsofothers.•Well-written role descriptions identify the work of the organisation and its reasons for existence as an employer •of human resources.Genericroledescriptionsarewritteninwidelydeclaredgeneraltermswithoutidentifyingspecificresponsibilities,•requirements, purpose and relationships. Some organisations use standard role descriptions for the same level within an organisation.An exact and detailed role description is progressively becoming a central factor of the effective use of helpful •human resources in libraries and other organisations.Responsibilities are like mini-roles that must be carried out to get the total role fruitfully completed. In a quick •changing work environment, responsibility areas usually stay constant whereas, duties change frequently with progress in technology and improvements in processes.Role descriptions may identify preliminary training requirements for a new employee.•Role is not meant to list every duty an employee performs.•Conventional roles were often described in a way that implied complete autonomy from other positions within •the organisation and were very distinctive in nature.In today’s work environment roles are incorporated into the organisations performance management system in •order to make certain they are reviewed often with the employee.Technology continues to advance rapidly offering wider choices.•Manual work has been replaced by mechanisation.•Today a great deal of the focus is on Internet and World Wide Web. Information technology has brought a •revolution in access, storage and recovery of information.With the globalisation and creating a world without border competition has become the force to reckon with.•Management positions held by women in India have doubled as compared to ten years ago.•Top leaders and managers must serve as learning roles models by sharing their own learning goals and by •persuade others to learn.Individual employees have to acknowledge responsibility for their own careers and their own individual •learning.

ReferencesBhattacharyya, D., • PerformanceManagementSystemsandStrategies. Pearson Education India.Pulakos, E.D., 2009. • Performance Management: A New Approach for Driving Business Results. John Wiley & Sons.2011. • What is Performance Management. [Video online] Available at: <http://www.youtube.com/watch?v=8XT6rAJOpcs> [Accessed 22 July 2013].2013. • Organisational Performance Management. [Video online] Available at: <http://www.youtube.com/watch?v=6tTUGzh0X1w>[Accessed 22 July 2013]Role expectations, the actual role performance and administrative effectiveness.• [Pdf] Available at: <http://www.ozelacademy.com/ejes_v3n1/EJES_v3n1_19.pdf> [Accessed 22 July 2013].Role Dynamics, Locus of Control, and Employee Attitudes and Behavior.• [Pdf] Available at: <http://amj.aom.org/content/19/2/259.short> [Accessed 22 July 2013].


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Recommended ReadingAguinis, H., 2008. • Performance Management. 2nd ed., Prentice Hall Higher Education.Rao, T. V., 2004. • PerformanceManagementandAppraisalSystems:HRToolsforGlobalCompetitiveness. SAGE.Varma, A., Budhwar, P.S. & DeNisi, A. S., 2008. • PerformanceManagementSystems:AGlobalPerspective. Taylor & Francis.

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Self AssessmentOrganisations are ____________entities.1.

directa. genericb. rationalc. generald.

Role ___________occurs when someone is unsure about what is expected of him or her.2. conflicta. restructuringb. loadc. ambiguityd.

___________role descriptions present information on all important responsibilities assigned to the person 3. performing the role.

Dynamica. Specificb. Genericc. Decisionald.

Who is responsible for making or approving noteworthy organisational decisions?4. Entrepreneura. Leaderb. Negotiatorc. Resource allocatord.

Which of the following statements is false?5. Roleconflictoccurswhentoomuchisexpectedandindividualfeelsoverloadedwithwork/responsibility.a. Today roles need to mirror the interdependence of processes and persons within the organisation.b. Manypersonsinaccountsstillcountonfingers,eventhoughtheirroleshavechangedtousingcomputersc. for accounts purposes.Role descriptions are the basis for an effectual performance management system and are used in carrying d. out performance reviews or role evaluations.

____________are like mini-roles that must be carried out to get the total role fruitfully completed.6. Conflictsa. Flowsb. Responsibilitiesc. Behavioursd.

____________continues to advance rapidly offering wider choices.7. Responsibilitya. Technologyb. Rolec. Conflictd.


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Which of the following statements is true?8. Role is meant to list every duty a manager does not perform.a. Role is meant to list every duty an employee does not perform.b. Role is meant to list every duty an employee performs.c. Role is not meant to list every duty an employee performs.d.

Role _____________is vital for every member of the group, but that is more important for new members.9. claritya. conflictb. responsibilityc. analysisd.


Roles 1. This occurs when the expectations of two or more roles held by the same A. individualbecomesmismatchedsuchasconflictbetweenwork&familydemands.

Intra sender 2. role-conflict These will be changing from time to time according to existing situation.B.

Liaison 3. Maintains a system of outside contacts that provide favours and information.C.

Inter role 4. conflict This takes place when the same person sends incompatible expectations.D.

1-B ,2-A ,3-D ,4-Ca. 1-A ,2-B ,3-D ,4-Cb. 1-B ,2-D ,3-C ,4-Ac. 1-B ,2-A ,3-C ,4-Dd.

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Chapter VIII

Human Resource Information Systems

Aim


introduce the concept of HRIS•

explain HRIS as a tool•

explore effectiveness of HRIS•

Objectives


explicate technology shifts and HRIS•

enlist the advantages of computerisation•

elucidate the need for HRIS•

Learning outcome


analyse the approaches to managing information at micro and macro levels•

enumerate the demerits of manual information systems•

understand the importance of information systems in HR management•


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8.1 IntroductionAn information system is an inter-related set of procedures and processes to present information for decisions. Information is data that has been processed so that they are meaningful. It adds to the depiction of an idea or initiative. It approves and validates earlier information. It tells us something which we did not know. Various organisations have computer-assisted information systems. An information system particularly developed for human resource management is referred to as HRIS – human resource information system. Human resource management, when it doesn’t contain the human resource planning function, entails merely a basic and fundamental HRIS. If this basic HRIS is computer-supported, it is likely to consist of a transition processing system or management information system. An information system provides for the buildup by gathering, processing by deleting irrelevant information, deciding among differing information and putting the information in a coherent array that promotes its understanding. Finally, the information is stored in a readily available pattern.

Information is maintained by ensuring its security and by revising it. Information is conveyed to the probable users in an arrangement and at a time most suitable for its use.

8.2 Concepts of HRISHRIS is a key management means which collects, maintains, analyses and reports information on people and jobs. Itisasystem,sinceitcombinesallthesignificantdata,whichotherwisemighthavebeenlyinginafragmentedandscattered way at several points in the larger system; converts this data into consequential conclusions or information and makes it available to the persons, who require it for their decisions. This assimilation of data can be at the macro level at the level of a nation or geographical regional groupings- or at the micro level, that is, at the level of anorganisationorfirm.

Macro level HRIS is usually focused towards manpower planning and contains statistical information on population, technology and economy. Such information can be acquired from several sources like publications of the Planning Commission, Ministry of Labour, The National Sample Survey Organisation, The National Labour Institute, The World Economic Forum, International Labour Organisation etc. just to name a few.

At the micro level, the information requirements include sections on recruitment, personal data, skills estimation, training and development, performance appraisal, rewards and punishment, grievance handling and so on. This information is used for comprehending the patterns of HR policies, actions, and employee behaviours as well as fordiscoveringgapsintheHRsystemandtheefficiencyoftheHRsystem.

8.3 Need for HRISAt the macro level, HRIS is vital for successful planning and budgeting of national resources. Based on HRIS, the Government and other agencies concerned with manpower planning and manpower productivity, such as the central and the State Governments, AICTE or educational institutions etc, can build up proper strategies to amplify the numbers as well as the employment of the pool of people accessible for jobs. Efforts can be made to build up the required skills and competencies amongst the labour pool to assemble the national/regional requirements by allotting sufficientbudgetsonthefoundationoftheirexpectedoptimaluse.ThelatestinitiativesoftheIndianGovernmentto improve the regional engineering colleges to IIT standards, or to craft centres of excellence, or invest in bio-technology research etc. are all results of a national level information base concerning the trends in the demand and the predictable supply of manpower made possible because of an HRIS at the macro level. At the micro or enterprise level, HRIS has become vital for decision-making and strategy formulation as well as for making certain justice and impartiality in HR policies and practices. There is a rising realisation that for organisational survival and growth in a competitive environment, human resource is the most vital resource. This coupled with the raise in the cost of hiring, retaining, developing and motivating people to execute at their best has pressed organisations to base their HR decisions on sound reason and thus, on suitable information. HRIS becomes a chief asset from this viewpoint.

The mounting need for lucidity among the employees and the society is an additional factor that is compelling organisations towards apt management of information in every area, including HR.

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As the economies are becoming further knowledgedetermined and thus,moving towardsmore qualified andeducated workforce, it is being progressively more realised that better-information makes employees more concerned, connected, and productive. A foremost source of connect between the employees and their companies is during the information that they receive and the feedback that they supply. Information management, in common and HRIS in particular, thus, has become a critical factor in managing employee performance.

Companies are ever more realising the gain of having systems that capture, examine, and report on the host of humanresourceaspectsthataresignificanttorunningabusinessandshareitwiththeemployeessothattheyself-regulate their input. HRIS is a device to accomplish this objective. Finally, in human management, insight of equity and justice are exceedingly important for managerial integrity and employee satisfaction. As a result, HRIS, which helps in recognising policy effects as well as the outline of policy implementation at various locations, by different people at different points of time, aids in detecting infringements of equity.

8.4 Technology Shifts and HRISTechnologicaladvancementshaveresultedinaspectacularmodificationinconsumerrelationsandthemethodsofservice delivery. Consumers are at present experimenting with new ways of performing business. Take, for instance, developments as regards the automated teller machines (ATMs). Over the course of their more than 15-year history, ATMs have developed to supply basic banking services 24 hours a day 7 days a week. Finally, innovative technology isbringingbankingservicesstraighttothecustomer’shome.Inthemedicalindustry,growingcostshaveamplifiedthe accessibility of at-home diagnostic equipment and tests.

Software packages let people assemble their own wills, and even design the house of their dreams. Changes, such as those described above, in the outside environment have grave repercussions for strategic planning within the organisation, particularly with regard to the human resource planning and service delivery functions. As in other cases, mentioned above, in the work-related matters to the employees are expecting superior speed, clearness and empowerment. These in turn, need higher availability and access to the information about their organisation, theirwork,themselvesandtheircolleagues.Somechangesthathavetakenplaceinsideorganisationstofulfilltheprerequisite of speed and quick response have been well recorded. Organisations have been reorganised through downsizing, rightsizings, and re-engineering that trim the work force, remove middle management, compress the organisation, and develop communication and decision making functions. However, proper information management and communication planning is seen to be the most vital and sustainable move to convince employee expectations of self-regulation, higher control over their work-life, and greater chance to contribute to the organisational goals.HRIS is, as a result, frequently seen to be an imperative in a fast changing technological environment.

8.5 Effectiveness of HRISAccording to Tang et al., the key to the effective planning of manpower and improvement of people productivity is an effective HRIS. However, in order to be effective an information system must take into account the following:

8.5.1 Adequacy of InformationToo much or too little information, both lead to faulty decision-making. Therefore, there must be some understanding regarding what information and in how much detail and covering what periods should be upheld.

8.5.2 SpecificityEvenwhereitisnotlikelytoquantifytheinformation,theinformationshouldbemadeasdefiniteaspossible.

8.5.3 RelevanceInformation is to be managed in the light of the requirements of the decision makers. Therefore, HRIS should focus on the needs of the decision-makers and stakeholders rather than on what is appealing or easily available or palatable to the people. The system, therefore, must also have the built in potential for deletion and revision of data.


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8.5.4 ComprehensivenessThe information should be complete from the point of view of the decision-maker giving details of who, what, how, when, where and why.

8.5.5 ReliabilitySince the information is going to be the foundation of critical decisions, it must satisfy the requirements of validity and reliability.

Furthermore, to ensure effectiveness, not only should the information provided be applicable and reliable but the deliverysystemshouldalsobethemostsatisfyingandcostefficient.Awealthofinformationbutnotaccessiblewhen needed or available at a restraining personal cost in terms of energy and time, is of barely any use. HRIS, thus, is not just a matter of gathering data but also of ensuring data excellence and understanding and the quality of delivery of information to the users.

8.6 IT supported HRISIn today’s enterprises, HRIS are characteristically Information Technology (IT) supported systems. This is not to say that without IT HRIS cannot be initiated. But information technology permits a great deal of usefulness of HRIS thanamanualsystem.SomeofthedeficienciesoftheManualSystemswhichanITbasedHRISovercomestoasubstantial degree are given below.

8.6.1 Deficiencies of the Manual System ThedeficienciesoftheManualSystemaregivenasfollows:

High Investment of time: In manual systems, the entry, updating, maintenance, and retrieval of information are •all time consuming.Accuracy: The manual transfer of data, and multiple entries of the same data increases the chances of error. •Asaresult,theaccuracyandreliabilityofthemanualsystemissuspect.Moreover,verificationofdata,andcorrections in it are time consuming.Fragmentation: Manual Information Systems are often fragmented with several pieces of related information •beingphysicallyplacedindifferentplaces.Thistoomakesretrievaldifficult.Duplication: More often than not, the same data may be held by different personnel but in different forms. If •any changes are to be made then they need to be made at all the points which lead to duplication of effort.Difficultyofanalysis:Themanualanalysisofdataistimeconsumingandcumbersome.Thedifficultyinextracting•informationpromptlyfrommanualsystemsconsiderablyreducesboth,theefficiencyandtheeffectivenessofthe system.

8.6.2 Advantages of ComputerisationWhile it is insolent to suppose that computerisation automatically remedies all the problems linked with manual systems, in the fast changing technological and information processing environment, it does present some potential benefits.

Convenience: In IT enabled systems, data entry, update and retrieval are all notably faster. Outmoded data may •be effortlessly replaced.Integration:Acomputerisedsystemcansignificantlyshrinkfragmentationandduplicationofdata.Alldatacan•beaccumulatedinasinglesystemtofacilitaterecoveryofentirepictureofeachemployeeorofeachdefinedparameter in a desired number of permutation and combinations. Furthermore, depending on the requirement, reportscanbegeneratedindifferentwaysthatsupplyanexactrepresentation.Verificationofdataanderrorrefinementarealsomoderatelyeasyincomputerisedsystems.Multi-userbenefit:Diversepeoplecanaccessthedataconcurrently,whichfacilitatesquickdistributionacross•geographical and structural boundaries and assists in quicker decision-making. Additionally, on-line data entry is achievable that leads to automatic up-dating of data resulting into improved informed decisions. Nevertheless, to achieve these advantages, it is central that the knowledge and know-how is accessible to the organisation, internally or from outside, to develop and tailor- make the system to go with the organisation’s unique needs.

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8.7 Designing and Implementing HRISAccordingtoMathisandJacksontodesignandexecuteanefficientHRIS,thefollowingarerequired:Detailsaboutthe required data, such as:

What information is available and what needs to be collected?•To what use this information be put?•In what format this information be presented?•Who should have access to what information?•When and how often this information is needed?•

The answers to these questions will help in the choice of both the hardware and the software.

8.7.1 Formation of a Project Team It is valuable to ascertain a cross functional project team to review user needs, recognise desired potential of the system, request and scrutinise bids from software and hardware vendors and identify the accomplishment procedure required to set up the system.

8.7.2 Training of those who will be Managing and using HRISBoth to ensure proper inputs into the system and valuable outputs from the system, training of users are advantageous. Insomeofthefirms,whereHRIShasbeenfruitfullyexecuted,acompleteteamoftrainerswasestablishedtogiveappropriate training to the employees.

8.7.3 Ensuring Security and PrivacyProper controls must be built into the system to defend the privacy rights of the employees. They are needed both for getting employee recognition as well as for legal and ethical protection against arbitrary usage of information.

8.8 HRIS as a ToolHR data are extensive in their diversity, and consist of job history (transfers, promotions, etc.), current and historical pay details, inventories of skills and competencies, education and training records, performance evaluation details, absence, lateness, accident, medical and disciplinary records, warning and suspensions, holiday entitlements, pensions data and termination records. An HRIS usually provides an electronic database for the storage and recovery of this data which is, at least potentially, obtainable to anyone who may want to access it. The imperative issue however, is how this IT system is really used in carrying out the HR tasks and for what reason.

This relates to the philosophy behind HRIS. Zuboff distinguishes between the “automating” and “informating” capacity of IT. The term “automate’’ is related with the design of substitution of human agency by technology to save physical and mental labour involved in carrying out an activity. From this perspective, an HRIS can be used as a means to improve effectiveness of HR information management by raising the pace of decisions, communication of decisions, and also the decline of overhead costs by task mechanisation and process automation, so that the number of HR specialists needed goes down.

Handled with concern, this can result in an enhanced HR service, by offering a quicker service and better quality and steadiness of information (Hall and Torrington, 1989). For example, it is possible that an employee obtains a note from the human resource department requesting feedback on the employee’s manager. The employee goes to an employeekiosk,identifieshim-orherself,usestheone-time-onlyPINnumberenclosedinthenote,andcompletesthe questionnaire. Likewise, an employee uses a phone to request a pension calculation. The automated system asks for different inputs that are made by pressing the telephone buttons. At the end of the interchange, the employee is given a time when a personal pension advisor will call and present a detailed report of the calculations. The employee later on receives the pension calculation at the printer in the employee kiosk, while talking to the counselor.


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While the automating potential of IT can develop competence in a lot of ways, it is still rooted in the “direct control’’ mind-set of the conventional organisations. Since employees’ activities and levels of productivity can become more “transparent’’ to the line or HR manager, the system facilitates close regulation and monitoring of tasks and people.

However, to realise the complete potential of the HRIS, it is essential that the system be used as a means for empowering employees rather than as a means for stricter control. This needs use of, what Zuboff calls, the “informating” capability of IT. This is the capability of IT to put together large pools of individual data into combined information regarding trends and patterns, which can be effortlessly shared across the boundaries of departments and geographical locations. Whether HRIS will be used as an “informating” tool or not, however, depends on the philosophy of the organisation which decides what information will be made accessible and to whom.Adopting an “automating” strategy assumes that the system itself is competent of handling many decisions. Its focal point, therefore, is on reducing the input of human operators and ultimately to restore them altogether, as far as possible. With respect to HRIS, thus, automating strategy involves computerisation of data management to restore employees as far as possible with machines and to augment the observation of employees through real time information. Access to the database in such a case is limited to the HR specialists and they use the data to scrutinise and implement direct control over employees.

Adopting an “informating” strategy involves providing employees with access to information generated from more powerful IT tools, so that they can make enhanced decisions based on their distinctive human capacity to deduce and adjust to the particular situation. IT would be used as an enabler for the managers to put together their objectives withwidercorporateobjectivesandtopermitindividualemployeestoaccessapplicablepartsoftheHRIStofindout for themselves information about their job, training and career structures, remuneration, terms of conditions of employment and organisational plans for employee participation. This way, the employees can become more “empowered’’,havingbettercontrolovertheirworkandwork-lives.Nevertheless,inordertoactasanefficientmotivation towards the introduction and preservation of a culture of empowerment, HRIS system would necessitate several well-matched information and communication technologies. The HRIS would need to be designed to function beyond the typical functional HR department boundaries, by extending access to the line management and individual employees. Sometimes, it may even have to go beyond the organisational boundaries, for example, in those cases where some of the HR activities have been outsourced.

8.9 Prerequisites for Introducing “Informating” HRISGenerally three types of conditions must prevail to allow the use of HRIS as a tool for empowerment. These are: The Corporate Climate, An Enlightened Human Resource Function, and The Technology Platform. All three must be in place or just around the corner before the new HRIS is practiced.

8.9.1 The Corporate ClimateThecorporateculturemustbefavorabletoemployeeempowermentand,thus,toaflatterorganisationarrangement.Introduction of transformational HRIS in large bureaucratic organisations, therefore, requires some degree of change towards, downsizing, team work, procedural review and reduction.

8.9.2 An Enlightened Human Resource FunctionThe human resource function must be enlightened and ready to serve. Where HR functionaries view themselves as controllers and auditors rather than as service providers and enablers, HRIS cannot be introduced as an empowering instrument.ThefearofmarginalisationwillsetoffresistanceandconflictfromtheHRfunctionitselfandifthrustupon, will lead to estrangement among the functionaries.

8.9.3 The Technology PlatformThe technology platform obtainable or planned for, must be capable of allowing the necessary connectivity. This includesthenetworkstomovethedataaswellasemployeePCsandkiosksfordatainputandaccess.Tobeefficient,the system has to constantly reach every employee through multiple channels.

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8.10 HRIS LeadershipAccording to Joseph Collette (2001) the traditional reactive staff role of HRIS and HR leaders needs to become morepracticalandtacticalinnature,if“informating”HRISistobeflourishing.Asaresult,thoseleadingtheHRISproposal must have some key competencies like, strategic vision, hands on technical skills, HR business acumen, andtheaptitudetoinfluenceandnegotiate,teamleadershipability,andprojectmanagementskills.

8.10.1 VisionIt is fundamental for today’s HRIS leaders to have the vision to see the big picture and be forward thinking. Having visionmeansbeingabletotakeexistingtechnologiesandprocessesandgenerateablueprintofhowtheywillfittogether. In creating the blue print, one must strongly believe how the blue print will contribute to achieving business objectives and goals, thereby making the HR organisation more tactical and building competitive advantage. Vision isthefirstprerequisiteforimplementingtechnologiesthatwillfitintotheoverallbusinessplanandbeconsistentwith long term goals.

8.10.2 Technical SkillsIn order to determine and help set up the vision, a meticulous understanding of the technical landscape is required. It is vital to understand which technologies to apply and which ones not to. Sometimes the best technical decisions made are the ones in which one chooses not to assume or implement a particular technology. Keeping up and staying in progress with available technologies to apply to different situations is essential in being able to make solid recommendations. The better informed an HRIS leader is more choices he/she will be able to provide when making solutions for the business.

8.10.3 Business AcumenUnderstanding the requirements of the business is important for delivering solutions that attach value. In order to create a vision that supports the goals of the HR organisation, HR must speak the language of the business as well as speak the technical terminology. The role of HRIS is technical in nature but its major rationale is to provide support for the business objectives through HR information management.

8.10.4 Ability to Influence and NegotiateSuccessfultechnologyimplementationsrequiretheassuranceofresourcesbothfinancialandhuman.Securingtheseresources requires the support of higher management. Also, with new technology, usually comes a fresh process. Process change needs to have support from the highest levels of the organisation. In addition to the aptitude to influence,thereisalsogenerallyaneedtodiscusstheresourcesrequired.HRISleadershavetoberespectedwithinmanagementcirclesinordertoproductivelyinfluenceandnegotiateforrequiredresources.

8.10.5 Team LeadershipThe process of organising and implementing technology initiatives should engage cross-functional teams of professionals with various backgrounds and levels. Managing this team requires ability to inspire and inspire an assorted group of people. Also, since the HRIS leader can’t do it all, a strong team must be built and fostered in order to make possible the successful completion of a variety of tasks, both functional and technical in nature. It isthefunctionoftheHRISleadertoencouragethegroup’scohesivenessandresolveanypersonnelconflictsthatmay occur.

8.10.6 Project ManagementIn the end, it’s project management skills that are required to execute and deliver on the vision, ideas and initiatives. TheHRISleadershouldbeefficientinorganising,directingandplanningtheprojects.Thisincludesmobilisingtherequired resources, setting timelines and milestones, monitoring and reporting progress to senior management and project stakeholders, and being able to focus on key individual project components as needed. As with any project lifecycle, the HRIS leader must make effectual use of constant feedback and evaluation methodologies in order to correctly study and regulate project initiatives to ever changing environments and business requirements.


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8.11 ConclusionInformation is the raw material of planning. A quality planning effort cannot be accomplished without sound and sufficientinformation.Informationisprovidedinanorganisationbyaninter-relatedsetofproceduresandprocessesknown as an information system.

An information system particularly developed for the human resource management function is called an HRIS – a human resource information system.

There are certain basic requirements upto which the information must match. At the macro level, although there exists institutional arrangements for providing manpower data, but the need for improving the effectiveness of human resource planning and policy has been articulated at several forums.

Atthemicrolevelthesignificanceofhavingawell-definedanddisconnectedmanpowerinformationsystemwithinthe organisation has been emphasised. The point has been made that at the enterprise level there is need for a wide-ranginghumanresourceinformationsystem.Inthissituation,thedeficienciesandshortcomingsofmanualhumanresource information system have been noted in order to build up a clearer outlook for going in for a computerised personnel record system.Several benefits and applicationsmanually doing information system and of usingcomputerised information system have been brought into focus.

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SummaryInformation is data that has been processed so that they are meaningful.•An information system particularly developed for human resource management is referred to as HRIS – human •resource information system.An information system provides for the buildup by gathering, processing by deleting irrelevant information, •deciding among differing information and putting the information in a coherent array that promotes its understanding.HRIS is a key management means which collects, maintains, analyses and reports information on people and •jobs.Macro level HRIS is usually focused towards manpower planning and contains statistical information on •population, technology and economy.At the micro or enterprise level, HRIS has become vital for decision-making and strategy formulation as well •as for making certain justice and impartiality in HR policies and practices.A foremost source of connect between the employees and their companies is during the information that they •receive and the feedback that they supply.Technologicaladvancementshaveresultedinaspectacularmodificationinconsumerrelationsandthemethods•of service delivery.Too much or too little information, both lead to faulty decision-making.•HRIS should focus on the needs of the decision-makers and stakeholders rather than on what is appealing or •easily available or palatable to the people.The manual analysis of data is time consuming and cumbersome.•Acomputerisedsystemcansignificantlyshrinkfragmentationandduplicationofdata.•Verificationofdataanderrorrefinementarealsomoderatelyeasyincomputerisedsystems.•An HRIS usually provides an electronic database for the storage and recovery of this data which is, at least •potentially, obtainable to anyone who may want to access it.With respect to HRIS, thus, automating strategy involves computerisation of data management to restore •employees as far as possible with machines and to augment the observation of employees through real time information.The corporate culturemust be favorable to employee empowerment and, thus, to a flatter organisation•arrangement.Where HR functionaries view themselves as controllers and auditors rather than as service providers and enablers, •HRIS cannot be introduced as an empowering instrument.Successfultechnologyimplementationsrequiretheassuranceofresourcesbothfinancialandhuman.•The process of organising and implementing technology initiatives should engage cross-functional teams of •professionals with various backgrounds and levels.Information is provided in an organisation by an inter-related set of procedures and processes known as an •information system.

ReferencesBagdi, S.K., 2012. • PracticalHumanResourceInformationSystems. PHI Learning Pvt. Ltd.Gupta, A.K., 2005. • DevelopingHumanResourceInformationSystem. Daya Publishing House.2012. • What Is Typically Included in anHRIS. [Video online] Available at: <http://www.youtube.com/watch?v=EEYa7Onvvog> [Accessed 22 July 2013].2013. • Human Resource Information System. [Video online] Available at: <http://www.youtube.com/watch?v=ZRjtmnBo9ng>[Accessed 22 July 2013]


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The importanceof usinghuman resources information systems (HRIS) anda researchondetermining the•successofHRIS. [Pdf] Available at: <http://www.issbs.si/press/ISBN/978-961-6813-10-5/papers/ML12_029.pdf> [Accessed 22 July 2013].Human Resource Information system.• [Pdf] Available at: <http://alumni.pondiuni.edu.in/dde/downloads/hrmiv_hris.pdf> [Accessed 22 July 2013].

Recommended ReadingBoroughs, A., Palmer, L. & Hunter, I., 2008. • HRTransformationTechnology:DeliveringSystemstoSupportthe New HR Model. Gower Publishing, Ltd.Walker, A. J., 1993. • Handbook of human resource information systems: reshaping the human resource function with technology. McGraw-Hill.Broderick, R.F. & Boudreau, J. F., 1991. • Human resource information systems for competitive advantage: interviews with ten leaders. Center for Advanced Human Resource Studies, School of Industrial and Labor Relations, Cornell University.

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Self AssessmentInformation is __________that has been processed so that they are meaningful.1.

supplya. rewardb. technologyc. datad.

____________level HRIS is usually focused towards manpower planning and contains statistical information 2. on population, technology and economy.

Groupa. Macrob. Managementc. Microd.

Information management, in common and HRIS in particular has become a critical factor in managing 3. employee_____________.

behavioura. appraisalb. performancec. managementd.

_____________advancementshaveresultedinaspectacularmodificationinconsumerrelationsandthemethods4. of service delivery.

Technologicala. Consumerb. HRc. Relevantd.

Which of the following statements if false?5. The manual transfer of data, and multiple entries of the same data increases the chances of error.a. Manual Information Systems are often fragmented with several pieces of related information being physically b. placed in different places.The manual analysis of data is time consuming and cumbersome.c. In manual systems, the entry, updating, maintenance, and retrieval of information are all time saving.d.

___________is not just a matter of gathering data but also of ensuring data excellence and understanding and 6. the quality of delivery of information to the users.

HRISa. Information managementb. AICTUc. Technology platformd.

Which of the following statements is true?7. Information is the raw material of leadership.a. Information is the raw material of planning.b. Planning is the raw material of information.c. Information is the raw material of delivery.d.


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Aquality____________effortcannotbeaccomplishedwithoutsoundandsufficientinformation.8. planninga. appraisalb. datac. managementd.

Successful____________implementationsrequiretheassuranceofresourcesbothfinancialandhuman.9. securitya. HRb. technologyc. informationd.


Proper controls 1. Advantage of computerisation.A.

Specificity2. This is maintained by ensuring its security and by B. revising it.

Diverse people can access the data 3. concurrently

These must be built into the system to defend the privacy C. rights of the employees.

Information 4. Even where it is not likely to quantify the information, D. theinformationshouldbemadeasdefiniteaspossible.

1-B, 2-D, 3-C, 4-Aa. 1-D, 2-A, 3-C, 4-Bb. 1-C, 2-A, 3-D, 4-Bc. 1-C, 2-D, 3-A, 4-Bd.

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Case Study I

Mr.Bhat, Human Resource Manager of IVS Group of companies approached the CEO on 30th march, 2007 and apprised him of the absence of Mr.Ajay Vaidhya, Assistant Accountant in the Corporate Finance Department, for the past one month and requested him to approve the show-cause notice to be saved to Mr. Ajay as per the Labour Laws in force. The CEO told Mr.Bhat:

“WhenMr.Ajayhasbeenabsentforthelastonemonth,yourdutyistogotoMr.Ajay,shouse,findoutthereasonandsolvetheproblemofMr.Ajay,andnotjusttoreporttheabsencetome.GoimmediatelytoMr.Ajay’shousefindthe reason and report it to me before 5.oo P.M. today.

Mr.Bhat immediately left for Mr.Ajay’s house and learnt from Mr.Ajay’s Wife that Mr.Ajay has been in distress as he has been trying to mobilise Rs.1,00,000 for the surgery of his sick wife in a reputed hospital in Chennai. Mr.Bhat could meet Mr.Ajay around 3.PM and both of them then met the CEO. Both of them apprised the CEO the reason for the absence and distress of Mr.Ajay.

The CEO immediately contacted the hospital and informed them that the company will pay Rs.1,00,000 tomorrow i.e., 31st March 2007 and requested the doctor to conduct the surgery for Ajay’s wife tomorrow itself. The CEO ordered Mr.Bhat to arrange to issue a cheque for Rs.1,00,000 in favour of the hospital and also pay Rs.10,000 in cash to Mr.Ajay to meet incidental expenses as a grant. Mr.Ajay as well as Mr.Bhat were surprised at the decision of the CEO Mr.Ajay became emotional and touched the feet of the CEO. The CEO told Mr.Bhat:”Problems of our employees are the company’s problems. We treat the employees as human being and members of the company’s family.” This piece of news spread in the entire company within no time and the employees felt highly secured. The productivity level increased by 100% in the next quarter itself and sustained over the years to come.

(Source: HumanResourceManagementHRMCaseStudies [Pdf] Available at: < http://www.indiaclass.com/human-resource-management-case-studies > [Accessed 22 July 2013]).

QuestionsWhy was Mr. Ajay absent for about a month?1. AnswerMr.Ajay was in distress because he was trying to accumulate 1 lakh rupees fo his wife’s medical treatment.

Why did the CEO provide Rs. 10,000 as just a grant to Mr.Ajay?2. AnswerThe CEO provided this sum of money to Mr. Ajay as grant so that he could carry out his wife’s medical treatment smoothly.

What would be the morale of employee’s family members after this incident?3. AnswerThe family members would feel secured and relieved with such a gesture of the company.


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Case Study II

Mr. A of Alfa community, are a newly appointed manager of a workshop, which has been categorised as an essential service. This means that the workshop must function on all the days. Rules lay down that, at least, two individuals must be on duty irrespective of their seniority or specialisation. The workshop is manned by an equal number of individuals of the two communities, Alfa and Beta. A good tradition has been built, i.e. when one community has a festival, the workers from the other community man the workshop and vice versa.

Recently, there were labour union election and Mr. B of Beta community has been elected as the leader. The new leader is reported to be very whimsical (unusual), though very good at heart. Your day of trial dawned when it came to light that on Friday next, both the communities claim to be their religious day. Both the communities want the other community to perform the duty on that day. While Alfa community is banking on you; the others are equally sure of their union leader from beta community winning the day for them. You realise that there have been a lot of discussions and more negotiations and discussions are making the situation worse. The attitudes of both the parties are hardening and the last discussions had ended as a war of words. You do not want to damage the good relations between the two communities built over the years but still have to solve the problem.

(Source: HrCaseStudy [Pdf] Available at: < http://www.studymode.com/essays/Hr-Case-Study-1589667.html > [Accessed 22 July 2013]).

QuestionsHow will you approach Mr. B of Beta community?1. What will you explain to your team members in order to justify that taking a decision under such circumstances 2. is a matter of chance?WhatreasonableexplanationasaleaderwillyougiveBetacommunitysothatclaimingthedayisjustified?3.

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Case Study III

Watson Public Ltd Company is well known for its welfare activities and employee oriented schemes in manufacturing industry from more than ten decade. The company employs more than 800 workers and 150 administrative staff and 80 management level employees. The Top level management views all the employees at same level. This can beclearlyunderstoodbyseeingtheuniformofthecompanywhichissameforall,startingfromtheMDtothefloorlevel workers. The company has two different cafeterias at different places one near the plant for workers and other near the Administration building. Though the place is different the amenities, infrastructure and the food provided are of same quality. In short the company stands by the rule Employee Equality.

The company has one registered trade union and the relationship between the union and the management is very cordial. The company has not lost a single man day due to strike. The company is not a pay master in that industry. The compensation policy of that company, when compared to other similar companies, is very less still the employees don’thavemanygrievancesduetotheotherbenefitsprovidedbythecompany.Butthecompanyisfacingcountablenumber of problems in supplying the materials in the recent past. Problems like quality issues, mismatch in packing materials (placing material A in box of material B) incorrect labeling of material, not dispatching the material on time etc.

The management views the case as there are loop holes in the system of various departments and hand over the responsibility to HR department to solve the issue. When the HR manager goes through the issues he realised that the issues are not relating to system but it relates to the employees. When investigated he come to know that the reason behind the casual approach by employees in work is:

The company hired new employees for higher level post without considering the potential internal •candidates.The newly hired employees are placed with higher packages than that of existing employees in the same •cadre.

(Source: HumanResourceManagementHRMCaseStudies [Pdf] Available at: <http://www.indiaclass.com/human-resource-management-case-studies> [Accessed 22 July 2013]).

QuestionsElaborate the principle followed by this company as regards the employees.1. ThepointsrosebytheHRmangerasreasonforthelatestissuesintheorganisationisjustifiableornot.Support2. your answer with Human resource related concepts.Help the organisation to come out from this critical issue. If you are in the role of HR manager what will be 3. your immediate step to solve this case.


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Bibliography

References2010. • WhatisOrganisationalCulture?WhyCultureMatterstoYourOrganisation? [Video online] Available at: <http://www.youtube.com/watch?v=Rd0kf3wd120>[Accessed 22 July 2013]2011. • What is Performance Management. [Video online] Available at: <http://www.youtube.com/watch?v=8XT6rAJOpcs> [Accessed 22 July 2013].2012. • How to boost labor supply and demand. [Video online] Available at: <http://www.youtube.com/watch?v=YU0NBVuUuaI> [Accessed 22 July 2013].2012. • What Is Typically Included in anHRIS. [Video online] Available at: <http://www.youtube.com/watch?v=EEYa7Onvvog> [Accessed 22 July 2013].2013. • Human Resource Information System. [Video online] Available at: <http://www.youtube.com/watch?v=ZRjtmnBo9ng>[Accessed 22 July 2013]2013. • Organisational Performance Management. [Video online] Available at: <http://www.youtube.com/watch?v=6tTUGzh0X1w>[Accessed 22 July 2013]B2Bwhiteboard, 2012. • Humanresourceplanning-defined.[Video online] Available at: <https://www.youtube.com/watch?v=tXLk8Q1OklA> [Accessed 22 July 2013].Bagdi,S.K.,2012.PracticalHumanResourceInformationSystems.PHILearningPvt.Ltd.•Bhattacharyya, D. K., 2009. • Human Resource Planning. 2nd ed., Excel Books India.Bhattacharyya, D., • PerformanceManagementSystemsandStrategies. Pearson Education India.Bramham, J., 1994• . Human Resource Planning. 2nd ed., Universities Press.Chapter 4 Human Resource Planning.• [Online] Available at: <http://www.oocities.org/hrm4uoft/Chap04.ppt> [Accessed 22 July 2013].Christopher Hunt, 2012. • Human Resource Planning Lecture. Available at: <https://www.youtube.com/watch?v=pQfZxgsR40U> [Accessed 22 July 2013].edu wala, 2012• . Human Resource Planning. [Video online] Available at: <https://www.youtube.com/watch?v=vSkGQ8tGx3I> [Accessed 22 July 2013].EmployeeCompensationandBenefits.• [Pdf] Available at: <http://122.166.126.42:8080/collect/projectr/index/assoc/HASH01ae/414fe22c.dir/doc.pdf> [Accessed 22 July 2013].FORECASTINGDEMANDANDSUPPLY• . [Pdf] Available at: <http://highered.mcgraw-hill.com/sites/dl/free/0070951772/846002/Bulmash_SampleChapter2.pdf> [Accessed 22 July 2013].Gupta,A.K.,2005.DevelopingHumanResourceInformationSystem.DayaPublishingHouse.•Human Resource Information system.• [Pdf] Available at: <http://alumni.pondiuni.edu.in/dde/downloads/hrmiv_hris.pdf> [Accessed 22 July 2013].HUMANRESOURCEPLANNING(HRP).• [Online] Available at: <http://www.mbaskool.com/business-concepts/human-resources-hr-terms/3907-human-resource-planning-hrp.html> [Accessed 22 July 2013].Human Resource Planning Process• . [Online] Available at: <http://smallbusiness.chron.com/human-resource-planning-process-4932.html> [Accessed 22 July 2013].Human Resource Planning.• [Online] Available at: <https://www.boundless.com/management/human-resource-management--2/purpose-of-human-resource-management/human-resource-planning/> [Accessed 22 July 2013].Human Resource Planning: Process, Methods, and Techniques.• [Pdf] Available at: <http://www.psnacet.edu.in/courses/MBA/HRM/3.pdf> [Accessed 22 July 2013].Human Resource Planning: Process, Methods, and Techniques• . [Pdf] Available at: <http://www.psnacet.edu.in/courses/MBA/HRM/3.pdf> [Accessed 22 July 2013].IUSoutheast, 2009. • HR Management: Planning & Forecasting. Available at: <https://www.youtube.com/watch?v=sP7Q51zHp4I> [Accessed 22 July 2013].

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Lunenburg, F. C., • HumanResourcePlanning:ForecastingDemandandSupply. [Online] Available at: <http://www.nationalforum.com/Electronic%20Journal%20Volumes/Lunenburg,%20Fred%20C.%20Human%20Resource%20%20Planning-%20Forecasting%20Demand%20%20Supply%20IJMBA%20V15%20N1%202012.pdf> [Accessed 22 July 2013].mattalanis, 2012. • Human Resource Planning. [Video online] Available at: https://www.youtube.com/watch?v=L_aiqSRL-j8> [Accessed 22 July 2013].nptelhrd, 2010. • Human Resource Planning-II. [Video online] Available at: <https://www.youtube.com/watch?v=FLRtMw8dD3E> [Accessed 22 July 2013].nptelhrd, 2010• . Lec-4 Human Resource Planning-I. [Video online] Available at: <https://www.youtube.com/watch?v=wcP976S8DsM> [Accessed 22 July 2013].Organisational Culture.• [Pdf] Available at: <http://uir.unisa.ac.za/bitstream/handle/10500/1133/03chapter2.pdf> [Accessed 22 July 2013].Pulakos, E.D., 2009. • Performance Management: A New Approach for Driving Business Results. John Wiley & Sons.Reilly, P., 1996. • Human resource planning: an introduction. Institute for Employment Studies.Role Dynamics, Locus of Control, and Employee Attitudes and Behavior.• [Pdf] Available at: <http://amj.aom.org/content/19/2/259.short> [Accessed 22 July 2013].Role expectations, the actual role performance and administrative effectiveness.• [Pdf] Available at: <http://www.ozelacademy.com/ejes_v3n1/EJES_v3n1_19.pdf> [Accessed 22 July 2013].Rowland, K.M. & Summers, S. L. 1981. • Human Resource Planning: A Second Look. Personnel Administrator.Sahu, R.K., 2009. • PerformanceManagementSystem. Excel Books India.TalentManagement, Talent Identification, SuccessionPlanning andTalentManageme• nt. [Video online] Available at: <https://www.youtube.com/watch?v=_m7tRotajdo&list=PLBAA758348D9DE2A9> [Accessed 22 July 2013].The importanceof usinghuman resources information systems (HRIS) anda researchondetermining the•successofHRIS. [Pdf] Available at: <http://www.issbs.si/press/ISBN/978-961-6813-10-5/papers/ML12_029.pdf> [Accessed 22 July 2013].Walker, J.W. 1980. • Human Resource Planning. McGraw-Hill, New York.

Recommended ReadingAgrawal, Satya Prakash, 1970• . Manpower Demand: Concepts and Methodology. Meenakshi Prakashan, Meerut.Aguinis, H., 2008. • Performance Management. 2nd ed., Prentice Hall Higher Education.Armstrong, M., 1988. • A Handbook of Human Resource Management. Kogan Page, London.Bell, D.J., 1974. • Planning Corporate Manpower. Longman Group Ltd.Boroughs, A., Palmer, L. & Hunter, I., 2008. HR Transformation Technology: Delivering Systems to Support •the New HR Model. Gower Publishing, Ltd.Bramham, J. 1990. • PracticalStaffingPlanning. IPM, London.Broderick, R.F. & Boudreau, J. F., 1991. • Human resource information systems for competitive advantage: interviews with ten leaders, Center for Advanced Human Resource Studies, School of Industrial and Labor Relations, Cornell UniversityDessler, G., 2001. • Human Resource Management. 7th ed., Prentice-Hall of IndiaElliot, V. & Orgera, A., 1993. • Competing for and with Workforce – 2000. HR Publication.


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Flamholtz, E. & Lacey, J., 1981. • Personnel Management: Human Capital Theory and Human Resource Accounting. UCLA Press, Los Angeles.Gautam, V. 1988. • Comparative Manpower Practices. National Publishing House, New Delhi.Mozina, S. 1984. • GuidetoPlanningforManpowerDevelopment. ICPE: Ljublijana. Peters, T., 1993. • Liberation Management: A Fawcett Combined book, Balantine Books.Rao, T. V., 2004. • PerformanceManagementandAppraisalSystems:HRToolsforGlobalCompetitiveness. SAGE.Reddy, S. M., 2005• . Human Resource Planning. Discovery Publishing House.Sims, H., • Human Resource Planning. Select Knowledge Limited.Stainer, Gereth, 1971. • Manpower Planning: The Management of Human Resource. Heinemann, London.Suri, G.K., 1988. Human • Resource Development and Productivity: New Perspectives. National Productivity Council.Turner, P., 2002. • HR Forecasting and Planning. CIPD PublishingVarma, A., Budhwar, P. S. & DeNisi, A. S., 2008. • PerformanceManagementSystems:AGlobalPerspective. Taylor & Francis.Walker, A. J., 1993.• Handbook of human resource information systems: reshaping the human resource function with technology. McGraw-Hill.

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Self Assessment Answers

Chapter Id1. c2. b3. c4. a5. d6. b7. d8. c9. a10.

Chapter IId1. c2. a3. b4. d5. a6. c7. b8. d9. c10.

Chapter IIIb1. d2. a3. c4. b5. a6. c7. d8. b9. d10.

Chapter IVd1. b2. b3. a4. c5. d6. b7. a8. c9. b10.


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Chapter Va1. d2. c3. d4. b5. a6. c7. d8. a9. c10.

Chapter VIc1. d2. a3. d4. b5. c6. a7. d8. c9. b10.

Chapter VIIc1. d2. b3. d4. a5. c6. b7. d8. a9. c10.

Chapter VIIId1. b2. c3. a4. d5. a6. b7. a8. c9. d10.

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