Human Resources planning.pptx

Human resources planning
Definition
Need and importance
Objective
Planning
Process

1. Human Resources planning By Aayushi Bhawsar

2. Meaning E.W. Vetter viewed human resource planning as “a process by which an organisation should move from its current manpower position to its desired manpower position. Through planning, management strives to have the right number and right kind of people at the right places at the right time, doing things which result in both the organisation and the individual receiving maximum long-run benefit.” Human resource planning (HRP) is the first step in the HRM process. HRP translates the organization’s objectives and plans into the number of workers needed to meet those objectives. The actual HRM process starts with the estimation of the number and kind of people required by the organization for the coming period. HRP is also known by other names such as ‘Manpower Planning’, ‘Employment Planning’, ‘ Labour Planning’, ‘Personnel Planning’, etc.

3. Definition Human Resource Planning or Manpower Planning (HRP) is the process of systematically reviewing HR requirements to ensure that the required number of employees with the required skills is available when they are needed. Getting the right number of qualified people into the right job is the crux of the problem here. In actual practice, this is not easy. Due to constant changes in labour market conditions, qualified people possessing relevant qualifications are not readily available. The organisation needs to go that extra mile, dig up every source of information and exploit every opportunity that comes its way in order to identify talent.

4. Need and Importance I. Assessing Future Personnel Needs: Whether it is surplus labour or labour shortage, it gives a picture of defective planning or absence of planning in an organization. A number of organizations, especially public sector units (PSUs) in India are facing the problem of surplus labour . II. Foundation for Other HRM Functions: HRP is the first step in all HRM functions. So, HRP provides the essential information needed for the other HRM functions like recruitment, selection, training and development, promotion, etc. III. Coping with Change: Changes in the business environment like competition, technology, government guidelines, global market, etc. bring changes in the nature of the job. This means changes in the demand of personnel, content of job, qualification and experience needed. HRP helps the organization in adjusting to new changes. IV. Having Highly Talented Manpower Inventory: Due to changing business environment, jobs have become more challenging and there is an increasing need for dynamic and ambitious employees to fill the positions. Efficient HRP is needed for attracting and retaining well qualified, highly skilled and talented employees.

5. Human Resource Planning – Objectives: i ) Proper assessment of human resources needs in future. (ii) Anticipation of deficient or surplus manpower and taking the corrective action. (iii) To create a highly talented workforce in the organization. (iv) To protect the weaker sections of the society. (v) To manage the challenges in the organization due to modernization, restructuring and re-engineering. (vi) To facilitate the realization of the organization’s objectives by providing right number and types of personnel.

6. (vii) To reduce the costs associated with personnel by proper planning. (viii) To determine the future skill requirements of the organization. (ix) To plan careers for individual employee. (x) Providing a better view of HR dimensions to top management. (xi) Determining the training and development needs of employees.

7. 5 steps in the human resource planning process The actual process of human resource planning involves five general phases. Listed below is a summary of each step to help you navigate the process: 1. Analyze organizational objectives and plans Success in HR planning relies on its connection to business goals, so you must start with a final purpose in mind. Determine what the organization wants to achieve in the future, how it intends to accomplish this, and how HR efforts will contribute to it. Each department will have unique objectives that HR will need to be involved in. Ideally, HR works very closely with management and has a clear grasp of what every area of the company is aiming for. Once you know that, you can ascertain how HR will meet those needs. For example, some departments may need you to focus on recruiting, while others may need to be downsized and reassign some current employees. 

8. 2. Evaluate the current state of your workforce and uncover gaps Before you go forward with plans for the future, you need to assess where the organization’s workforce currently stands by assessing its strengths and weaknesses. Do you have the right number of experienced employees? Which skills at what levels do you already have on board with your existing staff? To do this, you should consider the following: What is your total number of employees? How many employees are in each department? How many employees hold each position? What are the education, skills, competencies, and qualifications of your employees? How do employees rank in the performance evaluation data? What are the ages of your employees? (How many are approaching retirement?) There are several ways HR professionals can investigate these variables, such as: Meet with managers and department heads for their judgment of their employees’ abilities and where there is room for improvement. Conduct employee self-evaluations. Analyze  HRIS  data. Look at past performance reviews.

9. 3. Forecast future HR requirements Forecasting demand is the critical stage of the HR planning process. Bearing in mind the organization’s future goals, gauge the coming demand and supply of qualified employees. Demand forecasting involves determining the number of people needed and the level of talent required. Supply forecasting estimates future internal (promotion, transfers, position expansion) and external sources and their ability to meet your needs.  You accomplish this forecasting using internal data and market and industry trends. Be sure to include factors such as these: New products or services on the horizon Prospective mergers or acquisitions Labor costs Projected employee retirements/vacancies and turnover rates Technological advances and automation Scenario planning  is a way to brainstorm situations that may affect the direction of your organization and labor requirements in the future. Consider technological advancements, economic changes, new government regulations, etc., and consider how you can be flexible and which precautionary measures to take.

10. A  gap analysis  allows you to compare current employee quantity and skill levels with what will be needed to meet the organization’s goals. This method involves: Recognizing the current workforce status. Ascertaining what the ideal situation looks like. Identifying where the current lapses exist. You can use a SWOT (strengths, weaknesses, opportunities, threats) analysis to compile your findings and see which elements need the most focus.

11. Then your job is to find out how you can match the demand for quality employees with the available internal and external supply by addressing questions like these: Do we need to add more employees for new roles? If so, where from? How many? Full-time or part-time? Does the market have an adequate supply of potential employees? Do we need to train and develop our existing employees for reallocation? Which ones? Are we drawing on the expertise of current employees sufficiently? Do we need to adapt any of our HR policies or practices to accommodate future human resources needs?  

12. 4. Develop and implement a plan Now it’s time to formulate a human resource action plan that aligns with your organization’s overall strategy. It should take into account all the analyses you’ve completed and include talent strategies to match the supply and demand to get your organization ready for the future. 5. Monitor, review, and reassess your plan After you put your human resource plan in place, you must determine whether it is yielding results. Review how well it is helping you execute the organizational strategy and achieve goals in areas such as productivity or employee retention and satisfaction, etc. Monitor the new practices and look for areas where the plan might be hindered. It’s also essential to learn how changes are affecting employees. Managers can ask for feedback during performance reviews, or you can conduct employee surveys to get a feel for how things are going. Once you have input, you can identify any obstacles and work around them to adjust and improve your planning. You can even return to step one and start the planning process again armed with what you learned from the initial implementation. Human resources planning processes need to be an ongoing activity that is constantly evaluating and developing to stay in sync with all the changes companies must face. 

13. Human Resource Plan – Factors: Several factors affect HRP. These factors can be classified into external factors and internal factors. External Factors: i . Government Policies – Policies of the government like labour policy, industrial relations policy, policy towards reserving certain jobs for different communities and sons-of the soil, etc. affect the HRP. ii. Level of Economic Development – Level of economic development determines the level of HRD in the country and thereby the supply of human resources in the future in the country. iii. Business Environment – External business environmental factors influence the volume and mix of production and thereby the future demand for human resources. iv. Level of Technology – Level of technology determines the kind of human resources required. v. International Factors – International factors like the demand for resources and supply of human resources in various countries. vi. Outsourcing – Availability of outsourcing facilities with required skills and knowledge of people reduces the dependency on HRP and vice-versa.

14. Internal Factors: i . Company policies and strategies – Company policies and strategies relating to expansion, diversification, alliances, etc. determines the human resource demand in terms of quality and quantity. ii. Human resource policies – Human resources policies of the company regarding quality of human resource, compensation level, quality of work-life, etc., influences human resource plan. iii. Job analysis – Fundamentally, human resource plan is based on job analysis. Job description and job specification determines the kind of employees required. iv. Time horizons – Companies with stable competitive environment can plan for the long run whereas the firms with unstable competitive environment can plan for only short- term range. v. Type and quality of information – Any planning process needs qualitative and accurate information. This is more so with human resource plan; strategic, organisational and specific information. vi. Company’s production operations policy – Company’s policy regarding how much to produce and how much to buy from outside to prepare a final product influence the number and kind of people required. vii. Trade unions – Influence of trade unions regarding number of working hours per week, recruitment sources, etc., affect the HRP.

15. What is recruitment? Recruitment is the process of actively seeking out, finding and  hiring candidates  for a specific position or job. The recruitment definition includes the entire hiring process, from inception to the individual recruit’s integration into the company. Process and recruitment selection While the recruitment definition and process varies from company to company, there are some basic steps that any employer can take to make recruitment smoother and more successful, such as the following: Comparing different types of job recruitment software to find the ideal fit. Establishing clearly defined standards and expectations for the ideal job applicant. Taking proactive steps to integrate new employees with comprehensive “on-boarding.” Staying ahead of the latest trends and best practices in recruiting. To start, a company typically outlines what the job or position entails and creates a profile of the ideal candidate. The company must then attract the candidate through advertisement or the use of  recruitment software . Applicants are screened and interviewed by predetermined criteria. When the ideal candidate is chosen, they are hired and integrated into the workplace, and the recruitment process is complete. Companies often place a high value on recruitment, meaning they devote the appropriate time and resources to the process.

16. A recruitment policy is a framework that clearly outlines all your business’s recruitment practices. The purpose of a recruitment policy is to promote consistency, transparency, compliance and adherence to labor laws and legislation. No business can  afford to be without one . The only difference between small and large companies is the scope and complexity of the recruitment policies they need to implement. A small business can get away with a document comprising of only a few pages, where large companies needs a comprehensive policy with sub-policies and addendums. Many regard the recruitment and selection processes as peripheral to core business functions, but that’s a misconception. It’s one of the most important functions in any organization, no matter the size or type of business. Hiring the right candidates to maintain the success of any business is crucial. And the work that goes into selecting your future employees is at the heart of success. This means that you should always have a pipeline of potential candidates to accommodate restructuring, expansion, resignations, and retirements. This is where a solid recruitment and  selection process  policy with some strategy will come in handy.

17. Recruitment is the next step in the procurement function of human resources of the organization. It involves encouraging qualified people to make application for employment with an organization. It is not only a matter of satisfying an organisation’s need but it is an activity which influences the shape of the organisation’s future because the successes or failure of an organization is dependent on the potential of the employees working therein. Recruitment is a positive process because it stimulates people to apply for jobs to increase the “hiring ratio”, means the number of applicants for a job.

18. Sources of Recruitment in HRM – Internal and External Sources Internal Sources of Recruitment: Internal sources of recruitment are those where the vacancy is filled from within the organisation . It is desirable to look for applicants from within the organisation , if they have requisite qualifications needed to fill a vacancy. The internal sources of recruitment include personnel already on the payroll of an organisation . It also includes personnel who were once on the payroll and wish to return or whom the company may like to rehire. 1. Promotion: Promotion involves shifting of an employee to a higher position carrying higher responsibilities, higher status, and more pay. This promotion may be based upon both the seniority and merit. Further, it is a vertical shifting of employees or the upward movement of the employees. The promotion may be temporary or permanent in the organisation . The promotion without the increase in salary is called dry promotion. Seniority vs. Merit: There is always a conflict between the two options that, if the promotion should be based on merit or seniority.

19. 2. Transfer: A transfer refers to the shifting of the employees from one job to another without a drastic change in the responsibilities and the status of the employees. It is the horizontal shifting of the employees. Transfer of employees is made from one place to another place in the interest of work, worker, and the organisation . 3. Retired or Ex-Employees:

20. External Sources of Recruitment: External sources consist of: The labour market which can be tapped by way of job advertisements in newspapers and journals; employment exchanges; and notifying vacancies to educational, professional, and technical institutions. Currently, the Internet (online) has become another very potential external source of recruitment. Recommendations of employee unions may also be included in this category. 1. Advertising in Newspapers and Journals: This is noted to be a popular source for recruiting skilled, supervisory and managerial cadre personnel. Managerial positions are filled up through open advertisement in most of the companies. Clearly, higher the category of employees, greater is the use of advertising to invite external candidates for recruitment. Before advertising the job, an analysis of the job is a must. If the right type of person is not prompted to apply, no amount of interviewing or testing can ever lead to proper recruitment. Interviewing and assessment of can­didates serve to eliminate unsuitable candidates. These cannot be expected to improve the quality of candidates.

21. 2. Employment Exchanges: Employment exchanges have been set up by the government for bring­ing together job seekers and employers who are looking for employees. This is one of the non-traditional sources of recruiting workers in India. The primary function of Employment Exchanges is that of registration of work seekers and their placement against demand notified by employers. 3 . Educational/Professional/Technical Institutions: Recruitment of managerial, executive, and supervisory personnel (technical and professional) is widely attempted through notifications and interviews in the professional, management, and technical institutes such as the IITs, IIMs, Universities, and other technical and management institutes. This has been popularly termed as ‘campus recruitment/campus placements’. .4.Internet (E-Recruitment):

22. Unsolicited or Walk-in Applicants: Those looking for jobs apply on their own initiative when they come to know the likelihood of certain vacancies from reliable sources or just apply for suit­able jobs without any reference to advertisement or intent to recruit on the part of the employer. . Others: This included recruiting daily wage rated workers at the factory gates. An analysis of the external sources of recruitment shows that for supervisory and managerial positions advertising through newspapers and journals is the most popular method of inviting can­didates in Indian Companies. Notifying technical and professional institutes is the next common source for supervisory and managerial personnel; employment exchanges and unsolicited appli­cants could be next in order of preference for supervisors.