human-resourse-planing_amera

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HUMAN RESOURCE

PLANNING

ACQUIRING HUMAN

RESOURCES

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Human Resource Planning

An effort to anticipate future businessAn effort to anticipate future business

and environmental demands uponand environmental demands upon

and organization and to provideand organization and to providepersonnel to fulfill that business andpersonnel to fulfill that business and

satisfy that demandsatisfy that demand

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HUMAN RESOURCE PLANNING

Definition: It is the process by which managementDefinition: It is the process by which management

determines how an organisation should move from itsdetermines how an organisation should move from its

current manpower position to its desired manpowercurrent manpower position to its desired manpower

position. Through it management strives to have theposition. Through it management strives to have theright number and the right kind of people at the rightright number and the right kind of people at the right

places, at the right time, doing things which result inplaces, at the right time, doing things which result in

both the organisation, and the individual receiving,both the organisation, and the individual receiving,

maximum longmaximum long--rang benefitrang benefit

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Purpose of HR PlanningPurpose of HR Planning

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The process by which top management

determines overall organizationalpurposes and objectives and how theyare to be achieved.

Strategic Planning

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Strategic Importance

Human resources management (HRM): the

philosophies, policies, and practices that an

organization uses to affect the behaviors ofpeople who work for the organization

Strategic use of HRM activities can improveorganizational effectiveness

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Objectives of HRP

To ensure optimum use ofTo ensure optimum use ofexisting HRexisting HR

To forecast futureTo forecast futurerequirements for HRrequirements for HR

To provide controlTo provide controlmeasuresmeasures

To link HRP withTo link HRP withOrganizational PlanningOrganizational Planning

To determine levels ofTo determine levels ofRecruitment and TrainingRecruitment and Training

To estimate cost of HrTo estimate cost of Hrand Housing needs ofand Housing needs ofEmployeesEmployees

To provide a basis forTo provide a basis for

MDPMDP To facilitateTo facilitate

productivity Bargainingproductivity Bargaining

To meet the needs ofTo meet the needs of

Expansion andExpansion andDiversificationDiversification

programmesprogrammes

To assess shortage andTo assess shortage and

surplus of Hrsurplus of Hr 88


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Need and Importance of HRP

To carry on its workTo carry on its workand to achieve itsand to achieve itsobjectivesobjectives

HRP identifies gapsHRP identifies gaps

There is need toThere is need toreplace employeesreplace employees

HRP facilitatesHRP facilitatesexpansion and growthexpansion and growth

HRP helpful in effectiveHRP helpful in effectiveutilization ofutilization of

HR and TechnologyHR and Technology

HRP is useful inHRP is useful inanticipating Cost of HRanticipating Cost of HRwhich facilitateswhich facilitatesbudgeting easierbudgeting easier

HRP facilitates CareerHRP facilitates Careerand successionand successionplanningplanning

HRP helps in planningHRP helps in planning

for physical facilities likefor physical facilities likecanteen staff quarterscanteen staff quartersetcetc

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Why HRP gained so much

focus in recent times EmploymentEmployment

situationsituation

TechnologicalTechnologicalChangesChanges

OrganizationalOrganizational

ChangesChanges DemographicDemographic

ChangesChanges

Lead timeLead time

Hiring costsHiring costs

Increased MobilityIncreased Mobility

Shortage of SkillsShortage of Skills

Legislative ControlsLegislative Controls

Pressure GroupsPressure Groups

Systems ConceptsSystems Concepts

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Assessing FutureHuman ResourceNeeds

Assessing CurrentHuman Resources

Developing aProgram to Meet

Needs

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StrategicFormulation

StrategicImplementation

SWOT tells ushow well our

workforce isdeployed

Deploying humancapital is one of

musts of strategicimplementation

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HR PLANNING PROCESS

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Scanning the External

Environment Environmental ScanningEnvironmental Scanning

The process of studying the environment ofThe process of studying the environment of

the organization to pinpoint opportunities andthe organization to pinpoint opportunities andthreats.threats.

Environment Changes Impacting HREnvironment Changes Impacting HR

Governmental regulationsGovernmental regulations Economic conditionsEconomic conditions

Geographic and competitive concernsGeographic and competitive concerns

Workforce compositionWorkforce composition1414


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Internal Assessment of the

OrganizationalW

orkforce

Auditing Jobs and SkillsAuditing Jobs and Skills

What jobs exist now?What jobs exist now?

How many individuals are performing eachHow many individuals are performing each

job?job?

How essential is each job?How essential is each job?

What jobs will be needed to implementWhat jobs will be needed to implement

future organizational strategies?future organizational strategies?

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Process of HRP

1. Analyzing Organizational Plans1. Analyzing Organizational Plans

2. Forecasting Demand for HR2. Forecasting Demand for HR3. Forecasting supply of HR3. Forecasting supply of HR

4. Estimating Manpower Gaps4. Estimating Manpower Gaps

5. Action Planning5. Action Planning6. Monitoring and Control6. Monitoring and Control

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The HRP Process

Strategic plans &Organizational design

ResultantLabor Demand

Current supply

situation(internal & external)

Staffing plans

How many?What quality?Where?

Forecasting

1. Current(internal) supply2.Surplus / shortage?

Implementation

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HRP Process

Organizational Objectives

HR Programming

HR Needs Forecast HR Supply Forecast

HRP Implementation

Control & Evaluation

Surplus - Restricted Hiring,Lay Off, VRS, Reduced Hours

Shortage - Recruitment &Selection


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Human Resource Planning ProcessExternal Environment

Internal Environment

Strategic Planning


ForecastingHumanResourceRequirements

Comparing

Requirementsand Availability

ForecastingHuman ResourceAvailability

Surplus ofWorkers

Demand =Supply

No Action Restricted Hiring,Reduced Hours,Early Retirement,Layoff, Downsizing

Shortage ofWorkers

Recruitment

Selection

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Demand for Labor

Strategy / Design

Demand for Xnumberof employees,of certain types / quality, inparticular partsof organisation

Primary demand for labor

Short term

(static) demand

Long term

(fluid) demand

Forecasting

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Labour Supply

Assess internal supply againstdemand

Based on current supply,is there a shortage / surplus?

Staffing plans

Current supply

Forecasted supply

Surplus:

DownsizingTransfersWork sharingRetirementNatural attrition

Retraining

Shortage:

OvertimeOutsourcingRetrained transfersNew hiresTechnological innovation

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Forecasting HR Supply and Demand

ForecastingForecasting

The use of information from theThe use of information from thepast and present to identifypast and present to identify

expected future conditions.expected future conditions.

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Forecasting Methods

JudgmentalJudgmental

EstimatesEstimatesasking managers opinions, topasking managers opinions, top--downdown

or bottomor bottom--upup

Rules of thumbRules of thumbusingusing general guidelinesgeneral guidelines

Delphi techniqueDelphi techniqueasking a group of expertsasking a group of experts

Nominal groupsNominal groupsreaching a group consensus inreaching a group consensus in

open discussionopen discussion

Ratio trend analysisRatio trend analysis

Regression analysisRegression analysis

Work study techniquesWork study techniques

Delphi techniqueDelphi technique


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Forecasting PeriodsForecasting Periods

ShortShort--termtermless than one yearless than one year

IntermediateIntermediateup to five yearsup to five years

LongLong--rangerangemore than five yearsmore than five years

Forecasting the Supply for Human ResourcesForecasting the Supply for Human Resources

External SupplyExternal Supply

Internal SupplyInternal Supply


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Forecasting HR Supply and

Demand

Forecasting the Demand for Human ResourcesForecasting the Demand for Human Resources

OrganizationOrganization--wide estimate for total demandwide estimate for total demand

Unit breakdown for specific skill needs by number andUnit breakdown for specific skill needs by number and

type of employeetype of employee

Develop decision rules (fill rates) for positions toDevelop decision rules (fill rates) for positions to

be filled internally and externally.be filled internally and externally.

Develop additional decision rules for positionsDevelop additional decision rules for positions

impacted by the chain effects of internalimpacted by the chain effects of internal

promotions and transfers.promotions and transfers.

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Forecasting HR Supply and

Demand Forecasting External HR SupplyForecasting External HR Supply

Factors affecting externalFactors affecting external

Individuals entering and leaving the workforceIndividuals entering and leaving the workforce

Individuals graduating from schools and collegesIndividuals graduating from schools and colleges

Changing workforce composition and patternsChanging workforce composition and patterns

Economic forecastsEconomic forecasts Technological developments and shiftsTechnological developments and shifts

Actions of competing employersActions of competing employers

Government regulations and pressuresGovernment regulations and pressures

Other factors affecting the workforceOther factors affecting the workforce 2626


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Managing Human Resource

Surplus or Shortage

Workforce Reductions and the WARN ActWorkforce Reductions and the WARN Act

Identifies employer requirements for layoff advanceIdentifies employer requirements for layoff advance

notice.notice.

6060--day notice to employees and the localday notice to employees and the local

community before a layoff or facility closingcommunity before a layoff or facility closing

involving more than 50 people.involving more than 50 people.

Does not cover partDoes not cover part--time or seasonal workers.time or seasonal workers.

Imposes fines for not following notificationImposes fines for not following notification

procedure.procedure.

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Managing Human Resource Surplus or Shortage

Workforce RealignmentWorkforce RealignmentDownsizing, Rightsizing, and Reduction in Force (RIF) allDownsizing, Rightsizing, and Reduction in Force (RIF) all

mean reducing the number of employees in an organization.mean reducing the number of employees in an organization.

CausesCauses

EconomicEconomic -- weak product demand, loss of market share to competitorsweak product demand, loss of market share to competitors

StructuralStructural -- technological change, mergers and acquisitionstechnological change, mergers and acquisitions

Positive consequences

Increase competitivenessIncreased productivity

Negative consequences

Loss of specialized skills and experienceLoss of growth and innovation skills

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Managing Human Resource Surplus or Shortage

Downsizing approachesDownsizing approaches

Attrition and hiring freezesAttrition and hiring freezes

Not replacing departing employees and not hiring new employees.Not replacing departing employees and not hiring new employees.

Early retirement buyoutsEarly retirement buyouts

Offering incentives that encourage senior employees to leave theOffering incentives that encourage senior employees to leave the

organization early.organization early.

LayoffsLayoffs

Employees are placed on unpaid leave until called back to workEmployees are placed on unpaid leave until called back to work

when business conditions improve.when business conditions improve.

Employees are selected for layoff on the basis of their seniority orEmployees are selected for layoff on the basis of their seniority or

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Assessing HR Effectiveness

Diagnostic Measures of HR EffectivenessDiagnostic Measures of HR Effectiveness

HR expense per employeeHR expense per employee Compensation as a percent of expensesCompensation as a percent of expenses

HR department expense as a percent of total expensesHR department expense as a percent of total expenses

Cost of hiresCost of hires

Turnover ratesTurnover rates Absenteeism ratesAbsenteeism rates

Workers compensation per employeeWorkers compensation per employee

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