3.Human Resource Planning presentation ppt

Brief explanation to Humana resource management

1. Human Resource Planning Human Resource Planning (HRP) also termed as Manpower Planning defined as Process of evaluating as to how an organization should move from the current human resource position to its desired position. It refers to a range of tasks designed to ensure the organization has the appropriate number of Human Resources, having the right skills, doing the right activities in the right place, and the right time. It is a dynamic process through which managers monitor and manage the flow of HRs into, through, and out of the organization in order to achieve HR equilibrium.

2. Reasons for HRP External Factors Increasing environmental instability Demographic shifts Changes in technology Heightened international competition Market forces Skills in the labor market Labor laws Internal Factors Age structure of the workforce Productivity Labor mobility

3. Rationale of HRP Determine recruitment needs i.e. identify HR shortages Training needs identification i.e. to retain employees Anticipate HR redundancies i.e. due to labor surplus Determine Hr costs i.e. salaries, medical, housing and transport Accessing future premises e.g. office space Determine and plan early retirement

4. Rationale of HRP To cope with pressure of competition Means of good industrial relations e.g. productivity leading to sharing of profits To maximize use of human resources and ensure their ongoing development To secure the production capacity required to support organization objectives. To synchronize human resource activities with the organizational objectives To increase the organization’s productivity Reduces employee turnover

5. Ensure optimum use of human resources currently employed Assess or forecast future skill requirements of the organization Provide control measure to ensure availability of necessary resources when required Control the aspect of human resources Formulate transfer and promotion policies Rationale of HRP

6. Human Resource Planning Process 1. Formulation/ clarification of organization objectives i.e. changes in objective leads to changes in employees required and work to be performed. (downsizing or expansion, technology up-gradation/automation, new markets and new products, union constraints, external vs internal hiring training and retraining

7. 2. Environmental Analysis Environmental analysis and interpretation for changes: process of studying the environment to pinpoint opportunities and threats i.e. systematic identification and analysis of key forces and trends impacts on HR strategies technological, social, economic, education, market. (competition, laws and regulations, changes in technology and economic and social factors) Internal (Budget constraints, production levels, new products and services, organization structure & employee separations

8. 3. Human Resource Audit . HR Audit i.e. review the current HR thru application forms, personnel records and application blank forms to look out for age, skills, knowledge and experience, job description and Job analysis which identifies the skills, knowledge and personal abilities. current assessment, is on the number of employees, their job-related skills, demographic make-up, performance levels for strengths and weaknesses. What job exist, how many individuals are performing the job, how essential is each job and what jobs will be needed in the future

9. Cont’d 4. HR Forecast: Is the use of information from the past and the present to identify expected future conditions. It estimates the labour requirements of the firm at some time in the future and from where these resources will be obtained . There are two types of Human Resource forecast i.e. demand for labour and supply of labour. a. HR Demand Forecast estimates the quantity and quality of hr needed to meet the objectives of the organisation in terms of production figures, sales figures etc. The demand can be predicted for the entire organisation and/or individuals units.

10. Methods, Techniques of HR DD Forecast Work-study technique - is a systematic analysis of work in terms of people required, their skills, material and equipments used. A planner determines the man-hours the worker takes to produce a unit of output e.g. determining how many crates of soda can be produced in 1hour. Executive judgement: Its based on the individual opinion of departmental heads done from the bottom to top and vice versa by asking managers to identify their human resource requirements and submit them to the human resource department and they should justify their human resource requirements.

11. Delphi technique- Managers anonymously and independently answer questions about anticipated manpower demand. Managers take turns in presenting their forecasts and assumptions to others, who then make adjustments to their own forecasts, and this process continues until a viable composite forecast emerges. Projection of past trends ; means of statistical techniques e.g. Extrapolation predicts the growth or decline of a certain variable overtime. Methods of regression or correlation measure the extent in which change of the variables are related to each other e.g. hour input and sales.

12. HR supply forecast b. HR supply forecast: It measures the number of people likely to be available from within and outside the organisation i.e. Internal Factors internal and external labour markets and it involves analysis of existing hr, hr wastage, changing conditions of work, sources of supply in and outside the organisation. Factors that affect External HR supply Individual demographics Technological developments and shifts Actions of competing employers Government regulations and pressures

13. Methods used Card systems Human Resource Information systems Replacement charts/ Succession plans Skills Inventory Computer simulations Flow modeling / Markov Analysis

14. . Action planning/ Reconciling Human Resource demand and supply: HR planner reconciles the supply and demand of human resources forecasts i.e. plans will have data showing the extent and nature of shortages and surplus of Human Resources. a. I n case of shortages, the planner can take any of the following actions: Recruitment i.e. motivating potential applicants to apply for vacancies. Selection –choosing from the pool of potential job applicants the most suitable to fill the gap. Training and development of existing Human Resources i.e. imparting more skills and knowledge and attitudes.

15. Incase of shortages Retraining and redeployment Retention plan Succession planning determining who should fill particular positions. Promotions Lateral moves Overtime Temporary workers

16. Cont’d b. In case of surplus of Human Resources Laying off some staff deemed unsuitable to continue working for the company Job rotating some workers to work in other departments where there is more work. Dismissing particular employees who have been on several warnings. Instituting redundancy schemes Retirement schemes/incentives Reduced hours of work

17. Cont’d Evaluation of human resource planning: It is aimed at establishing the extent to which HRP objectives have been achieved e.g. whether HRP has considered the recruitment and training needs, whether retirement schemes have been developed, some staffs have been dismissed, downsizing has taken place or new staffs have been hired.  Are budgets, targets and standards met? , responsibilities for implementation and control and reports for monitor HR plan.

18. Challenges of HRP Lack of top management support Limited Human Resource data due to failure to set HRMIS. Inadequate skilled personnel to carry out the planning process Changes in economic conditions, technology, marketing conditions and labor force condition which tend to make long forecasts unreliable Trade unions agitation during structural adjustments Limited resources especially funds and time. Unfavorable government policies e.g. on labor legislation, population composition, education etc Conflict within and between depts ’ due to limited coordination Unpredictable human resource wastage especially natural wastage