HRP.pptx

HRM

1. MODULE-2

2. Module Outcomes Understand the Meaning and definition of HRP. Features and importance of HRP. Process of HRP. Factors affecting HRP. Guidelines for effective HRP.

3. “if you wish to plan for a year, sow seeds if you wish to plan for ten years, plant trees if you wish to plan for a life time, develop men”.

4. Human resource planning  is a process that identifies current and future  human resources  needs for an organization to achieve its goals.  Human resource planning  should serve as a link between  human resource  management and the overall strategic  plan  of an organization. It ensures the right type of people, in the right number, at the right time and place, who are trained and motivated to do the right kind of work at the right time. It is always based on forecasting and predicting future.

5. Meaning Human Resource Planning (HRP) is the process of forecasting the future human resource requirements of the organization and determining as to how the existing human resource capacity of the organization can be utilized to fulfill these requirements .  HR is an important corporate asset and overall performance of companies depends upon the way it is put to use.

6. Definition According to E.W. Vetter, human resource planning is “the process by which a management determines how an organisation should make from its current manpower position to its desired manpower position. According to  Jeisler ,  "Manpower planning is the process including forecasting, developing and controlling— by which a firm ensures, it has the right number of people and the right kind of people and at the right places at the right time doing things for which they are economically most useful“ According to Stainer, “the strategy for the acquisition,utilisation,improvement and preservation of an organisation’s human resources. It is aimed at co-ordinating the requirement for and the availability of different types of employees”. According to Russ C.F, “man power planning is the process of getting the right number of qualified people into the right job at right time”.

7. FEATURES OF HRP Incorporate the human resource requirement both in number and kind. Maintains economy in utilisation of human resources. Presents an inventory of the existing manpower. Flexible – suits to the changing needs of an organisation. P rojecting future demand. Continuous process. C oncerned with acquisition, utilization, improvement and retention of the organisation’s human resources. Two phase process- estimation of the demand and supply of human resource to maintain equilibrium.

8. It ensures adequate number of persons are selected and trained in advance to fill future job vacancies of the organisation. It identifies the gaps in existing manpower in terms of their quantity and talents. Helps to identify replacement of personnel –retirement, death, resign, injury. Future personnel need- surplus or deficiency Coping with change- competition and technology changes It helps in avoiding skills deficiency. Helps to anticipate cost of human resources to prepare budget leads to reduce cost through effective utilisation.

9. HUMAN RESOURCE PLANNING PROCESS HR needs Forecast HR supply Forecast Corporate objectives and policies HR Programs HRP Implementation Control and evaluation Of programs Surplus Restricted hiring Reduced hours VRS, layoff etc Shortages Recruitment Source: Aswathappa, 2008, p.82 Environmental scanning

10. Human resources planning  ensures the best fit between employees and jobs while avoiding manpower shortages or surpluses. Objectives of Manpower planning : It should be integrated with overall organizational objectives. HRP should be more concerned with filling future vacancy with the right kind of people. Analyzing current manpower inventory: The main purpose of HRP is to avoid understaffing or overstaffing. Manpower inventory refers to the assessment of the present and potential qualifications of present employees qualitatively and quantitatively.

11. 3. Demand Forecasting : The process of estimating organization's quantity and quality of future workforce. HR demand forecast must consider both internal (budget constraints, production level, new products and services, employment policy etc.) and external factors (local and global competition, economy, political and legal conditions etc.) It projects how business needs will affect HR needs using qualitative and quantitative methods.

12. Factors affecting demand forecasting Employment trend Replacement needs: Due to death, resignation, and termination of employees. Absenteeism: Is a situation when person fails to come for work, when it is scheduled to work. Rate of absenteeism= Expansion and growth plans of the business. Work study.  

13. Qualitative Techniques a. Managerial Judgments Managers brainstorm and share their ideas and list them in writing. As the ideas are presented, a master list of the ideas is compiled so that everyone can refer back to them. In bottom up approach line managers submit their future demands. In top down approach top management decides company's and departments future workforce demand.

14. b. Delphi Technique More accurate and refined method. The experts go through various rounds of forecast estimates but no face to face meeting of the experts takes place as an intermediary is involved. Managers are asked to provide manpower requirement as per pre-designed questionnaire to HR Dept. Each manager submits requirements. The responses are summarized and then send again to managers for further processing. This process continues till a final conclusion on the forecast is reached. Time consuming and difficult in administration.

15. Quantitative Techniques These techniques are based on the assumptions that the future is an extrapolation from the past. a. Trend Analysis Quick and easy way to forecast demand. Past ratio between sales volume and number of workers are reviewed to determine future demands.

16. b. Workforce Study Techniques Calculation of amount of labour required by determining length of operations and units of production. Planned output for next year : 20,000 unit Standard hours per unit : 5 Planned hours for the year (20000x5) : 100,000 Productive hours per man : 2,000 (allowing normal overtime, absenteeism and idle time) Number of direct labour required : 50 (100000/2000)

17. New Venture Analysis Useful for new business ventures. Estimating HR needs based on analysis of existing companies in same business. For example: Company starting coal mine operation can predict future personnel needs by analyzing the workforce demand of companies operating in industry. 10/10/12

18. 4. Labour Supply Forecast Whereas the labour demand forecast projects HR needs, the labour supply forecast projects resource availability. Through this forecast one can come tom know the firms current and projected competencies. In supply forecasting, availability of kind and number of workers measured from two sources: Internal supply External supply

19. Estimation of Internal Supply of Computer Programmer INTERNAL SUPPLY internal supply =current personnel level – outflows + inflows Sources of Inflows No. of People Current Personnel level Sources of Outflows No. of People Transfer 12 Resignations 13 Promotions 10 Discharges 2 Current Personnel level 250 Demotions 4 Retirements 10 Promotions 13 Total inflow 22 Total outflow 42 Adopted from Aswathappa, 2008, p. 92 Internal supply: 250-42+22=230

20. EXTERNAL SUPPLY External sources important for several reasons such as New blood and new experience will be available. Organization needs to replenish lost personnel. Organization growth and diversification.

21. 5. Manpower gaps: Difference between demand forecast and supply forecast. It helps to identify surplus and shortage of HR in future. Gap may occur in terms of knowledge, skills, aptitude. Gap is zero(supply=demand) Gap is positive(supply>demand) Gap is negative(supply<demand) 6. Action plan : Converting HR plan into actions. Plans to meet surplus manpower may be redeployed in other departments and retrenchment in consultation with trade unions. People may be persuaded to quit voluntarily through golden handshake. Deficits can be met through recruitment, selection, transfer, promotion etc

22. HR PLAN IMPLEMENTATION Strategies for Managing Shortages Strategies for Managing Surplus Recruitment of new employees Freeze hiring Offer incentive to postpone retirement Don not replace leaving staff Rehire retiree/part time staff Reduce work hours Attempt to reduce turnover Leave of absence Work current staff overtime Across the board cut in pays Subcontract work layoffs Hire temporary employees Reduce outsource work Redesign jobs (BPR) Switch to variable pay plan Strategic HR Initiatives Adopted from Aswathappa, 2008, p. 95

23. 7. Appraisal of manpower planning (feedback) Training and Development Training is not only for new comer but also to the existing employees to update skills and knowledge. Identification of trainers for conducting development program. Frequency of training and development and budget allocation for such program. Effectiveness of man power planning process is to be evaluated and comparison has to be made between HRP with its actual implementation to ensure the availability of employees for different jobs.

24. External factors: Government policies: Regulatory frame work of the country having influence on HRP. policies of the government like labour policy, industrial relation policy, policy towards reserving certain jobs for different communities and law of the soil etc affect the HRP. Economic development: an economy with high GDP growth rate, a huge growing market creates more job opportunities leads to increase in production and sales and more employment opportunities. Business environment: Level of technology: it determine the kind of human resource required. International factors: demand for resources and supply of resources in various countries. Availability of outsourcing facilities with required skills and knowledge of people reduces the dependency on HRP. Information technology: new technology brings new skills requirements, so companies need to be aware of proficiencies and training needs. Technology changes very fast and companies plan according to the requirements. Initiatives on supply chain management, enterprise resource planning, computer aided design etc have influenced the quality and quantity of manpower required in the organisation.

25. Internal factors: Company policies and strategies: company policies and strategies relating to expansion, diversification, alliances determines the HR demand in terms of quality and quantity. Human resource policies: policies of the company regarding quality of human resource, compensation level, quality of work life influence HR plan. Formal and informal groups: Job analysis: consist of job description and job specification determines the type of human resource required. Time horizon: short term and long term forecast have to be considered and if the company having stable competitive environment can plan for long run and unstable competitive environment can plan for short term plans. Type and quality of forecasting information(HIRS): any planning process needs qualitative and accurate information. This is related to HR plan, strategy, organisational and specific information.

26. Company’s production operations policy : policy relating to how much to produce and how much to buy from outside to prepare final output influence the number and kind of people required. Organisational changes and organisational culture : changes takes place with in organisation from time to time that is the company diversify into new product or closedown in some area etc appointing or removing people will change according to situation. HRP needs are to be taken in to account in relating to flexibility in terms of working hours, dress code etc. Availability of funds: planning must occur with in the budget allowed to maximise resource usage. Employees turnover: directly affects a firms labour demand, include the voluntary and involuntary termination of employees with in an organisation. Employees movements: company can use promotions, transfer, demotions.

27. Guidelines for Effective Human Resource Planning

28. Barriers to effective Human resource Planning Improper Linkage between HRP and Corporate Strategy Inadequate Appreciation of HRP Rigidity in Attitudes Environmental Uncertainty Inappropriate HR Information System Lack of coordination with other Functions