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HR PLANNING
- 1.
- 2. Human Resource isan important corporate asset and the overall performance of companies depends upon the way it is put to use. Globally Major issues in today’s organizations are skill shortages, competency gaps, redundancies, downsizing, rightsizing.
- 3. HUMAN RESOURCE PLANNING Theprocess of analyzing and identifying the need for and availability of Human Resources so that the Organization can meet its objectives. The Process of determining an Organization’s human resources needs. Or
- 4. “HRP includesestimation of how many qualified people are necessary to carry out the assigned activities, how many people will be available, and what , if anything, must be done to ensure that personnel supply equals personnel demand at the appropriate time in the future.” -Terry L.Leap and Michael
- 5. Forecast futurerequirements of human resources with different levels of skills. Assess surplus or shortage, if any, human resources available over a specified period of time. Anticipate the impact of technology on job and requirements for human resources. The ultimate objective is to relate future human resources to future enterprise needs so as to maximize the future return on investment in human resources.
- 6. Control thehuman resources already deployed in the organization. Provide lead time available to select and train the required additional human resource over a specified time period.
- 7. Large numbersof employees who retire, die, leave organizations, or become incapacitated because of physical or mental ailments, need to be replaced by new employees. Human Resource Planning ensures smooth supply of workers without interruption
- 8. 1. FUTURE PERSONNELNEEDS • Surplus or deficiency in staff strength • Results in the anomaly of surplus labour with the lack of top executives 2. COPING WITH CHANGE • Enables an enterprise to cope with changes in competitive forces, markets, technology, products & government regulations 3. CREATING HIGHLY TALENTED PERSONNEL • HR manager must use his/her ingenuity to attract & retain qualified & skilled personnel • Succession planning 4. PROTECTION OF WEAKER SECTIONS • SC/ST candidates, physically handicapped, children of the socially disabled & physically oppressed and backward class citizens.
- 9. 5. INTERNATIONAL STRATEGIES •Fill key jobs with foreign nationals and re-assignment of employees from within or across national borders 6. FOUNDATION FOR PERSONNEL FUNCTIONS • Provides information for designing & implementing recruiting, selection, personnel movement(transfers, promotions, layoffs) & training & development 7. INCREASING INVESTMENTS IN HUMAN RESOURCES • Human assets increase in value 8. RESISTANCE TO CHANGE AND MOVE • Proper planning is required to do this
- 10. 9. OTHER BENEFITS •Upper management has a better view of the HR dimensions of business decision • More time is provided to locate talent • Better opportunities exist to include women & minority groups in future growth plans • Better planning of assignments to develop managers can be done
- 11. Interfacing withstrategic planning and scanning the environment Taking an inventory of the company’s current human resources Forecasting demand for human resources Forecasting the supply of HR from within the organization and in the external labor market
- 12. Comparing forecastsof demand and supply Planning the actions needed to deal with anticipated shortage or overages Feeding back such information into the strategic planning process.
- 13. I. TYPE &STRATEGY OF ORGANISATION Internal growth Informal Inflexible Growth through M & A Reactive Flexible Proactive Formal
- 14. I. TYPE &STRATEGY OF ORGANISATION II. ORGANIZATIONAL GROWTH CYCLES & PLANNING • Embryonic stage – No personnel planning • Growth stage – HR forecasting is essential • Maturity stage – Planning more formalized & less flexible • Declining stage – Planning for layoff, retrenchment & retirement III. ENVIRONMENTAL UNCERTAINITIES • Political, social & economic changes • Balancing programmes are built into the HRM programme through succession planning, promotion channels, layoffs, flexi time, job sharing, retirement, VRS, etc….
- 15. IV. TIME HORIZONS •Short-term & Long-term plans V. TYPE & QUALITY OF FORECASTING INFORMATION • Type of information which should be used in making forecasts VI. NATURE OF JOBS BEING FILLED • Difference in employing a shop-floor worker & a managerial personnel VII. OFF-LOADING THE WORK
- 17. Organizational objectives and policies HRNeeds forecast HR Supply forecast HR Programming HRP Implementation Control and evaluation of programme Surplus Restricted Hiring,Reduced Hours,VRS,Lay off etc Shortage Recruitment and Selection
- 18. Demand forecastingis the process of estimating the future quantity and quality of people required. The basis of the forecast must be the annual budget and long-term corporate plan, translated into activity levels for each function and department
- 19. Demand forecastingmust consider several factors both internal and external. Among external factors are competition(foreign and domestic), economic climate, laws and regulatory bodies, changes in technology and social factors. Internal factors include budget constraints, production levels, new products and services, organizational structure and employee separation.
- 20. Demand forecastinghelps to : ◦ Quantify the jobs necessary for producing a given number of goods ◦ Prevent shortage of people where and when they are needed most ◦ Determine what staff-mix is desirable in the future ◦ Monitor compliance with legal requirements with regard to reservation of jobs ◦ Asses appropriate staffing levels in different parts of the organization so as to avoid unnecessary costs
- 22. Managerial judgment Ratio-trend analysis Work study techniques Delphi technique Other techniques
- 23. In thisall managers sit together, discuss and arrive at a figure which would be the future demand for labour. This technique may involve a ‘bottom-up’ or ‘top-down’ approach. A combination of both could yield positive results.
- 24. This isthe quickest forecasting technique. This technique involves studying past ratios, say, between the number of workers and sales in an organization and forecasting future ratios, making some allowance for changes in the organization or its method.
- 25. Work studytechniques can be used when it is possible to apply work measurement to calculate the length of operations and the amount of labour required.
- 26. • This techniqueis the method of forecasting personnel needs. • It solicits estimates of personnel needs from a group of experts, usually managers. • The HRP experts act as intermediaries, summarize the various responses and report the findings back to the experts. • Summaries and surveys are repeated until the experts opinion begin to agree.
- 27. Supply forecasting measuresthe no 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 conditions of work.
- 28. Quantify noof people and positions expected in near future. Clarify the staff mixes. Prevent shortage of people Asses present staffing levels in different parts of organization.
- 29. Existing humanresources Internal sources of supply External sources of supply
- 30. • Skill inventories– info about non-managers. 1. Personal data 2. Skills 3. Special qualifications 4. Salary and job history 5. Company data 6. Capacity of individual 7. Special preference of individual
- 31. • Management inventories 1.Work history 2. Strengths 3. Weakness 4. Promotion potential 5. Career goals 6. Personal data 7. Number and types of employees supervised 8. Total budget managed 9. Previous management duties.
- 32. HR planningand analysis Equal employment Staffing HR development Compensation and benefits Health,saftey and security Employee and labor relations
- 33. Inflows andoutflows IS= current supply – outflow + inflow Turnover rate No of seperations during one year × 100 Avg no of employees during the year Productivity level Movement among jobs
- 34. New bloodand new experience To replenish old personnel Organizational growth and diversification
- 35. After personaldemand and supply are forecast the vacancies should be filled at right time with right employees.
- 36. Converting HRplan into action. Action programmes are.. Recruitment Selection & placement Training and development Retraining & redeployment The retention plan The redundance plan The succession plan
- 37. If Shortageof employees - Do- Hire new full-time employees Offer incentives for postponing retirement Re-hire retired employees on part-time basis Attempt to reduce turnover Bring in over-time for present employees Subcontract work to another company Hire temporary employees Re-engineer to reduce needs
- 38. If surplusof employees is expected -Do- Do not replace employees who leave Offer incentives for early retirement Transfer or reassign excess employees Use slack time for employees training or equipment maintenance Reduce work hours Pay off employee
- 39. Conflicts mayexist between short term and long term HR needs. Conflicts between quantitative and qualitative approaches to HRP. Non-involvement of operating managers renders HRP ineffective.