================================================== ***FIRST THE DIFFICULT factors, YOU MUST KEEP IN MIND WHILE ''HR PLANNING''.

FACTORS COULD --- GOVERNMENT/ ECONOMIC/LEGAL/SOCIAL *************************************************************************** *********** -as the economy grows/declines, the demand for HR resources changes not only in quantity but also in quality/ types. -social pressure to provide the right environment for employees. -political pressure to employ local population, irrespective of skills/ knowledge. -legal challenges to recruitment / compensation on discrimination . -technology changes means getting right type of people or provide the right type of training. -competitive pressure to get the right talent at the right compensation. -CORPORATE strategic planning seeks strategic HR planning. -BUDGET constraint put pressure on HR to get the best resources for the least. -sales / production increases in business, puts pressure on HR to recruit more. -sales / production decreases in business, puts pressure on HR to rationalise recruitment. -new venture means demand for new type of skills/ knowledge. -acquisitions / mergers means rationalization of HR. -Organization development means HR implementing new structure, new culture, new systems etc. -Job redesign means HR implementing new methods, new process, new systems etc. -Globalization means managing HR diversity, new culture change, new training etc. -HR challenges / difficulties include *managing retirement *managing voluntary retirement schemes *managing terminations *managing leave of absence. *managing part time workers/ causals. *managing layoffs -Balancing the INTERNAL SUPPLY ESTIMATES AND EXTERNAL SUPPLY ESTIMATES.

*INTERNAL SUPPLY ESTIMATES -staff skills inventories -management inventories -replacements requirements -transition requirements *EXTERNAL SUPPLY ESTIMATES -labor market supply -community attitude -demographic trends *MANAGING WORK OPTIONS -shorter weeks -flexitime -telecommuting -virtual organizations. ================================== ***SECOND HR PLANNING SHOULD TAKE INTO CONSIDERATION INTERNAL COMPANY FACTORS LIKE ****************************************************************** 1.Corporate VISION 2. Corporate Mission 3. Corporate Objective 4. Corporate Strategy 5.Corporate Organization Policy/ Budget Guidelines. 6. Corporate HR objective/ strategy 7. Corporate Industrial Relations Policy

8. Corporate Sales forecasts [ 3 or 5 ] 9. Corporate Product Plans [ 3 or 5 ]

10. Corporate Production forecasts. [ 3 or 5 ] ============================================= ***THIRD AS PART OF HR PLANNING , review the following CHANGING FACTORS WHICH AFFECTS HUMAN RESOURCES ************************************************************************ 1.The impact of technological change on task needs. 2. Variations in the efficiency, productivity, flexibility of labor as a result of training, work study organizational change, new motivations, etc. 3. Changes in employment practices [ e.g. subcontractors or outsourcing etc ] 4.Other variations due to new legislations like new health requirements, safety requirements etc. 5.Changes in government policies 6. Labor demand and supply . 7. Skills levels availability like tax/ tariff etc

What should emerge from this analysis / reviews is a "thought out" and logical staffing demand schedule for varying dates in the future which can then be compared with the crude supply schedule. The comparison will then indicate what steps must be taken to achieve a balance. =========================================== ***FOURTH KEEP THIS IN MIND, the barriers, WHILE DEVELOPING ''HR PLANNING'' *************************************************************************** ** BARRIERS TO HR PLANNING. *CEO'S PERCEPTION OF HUMAN RESOURCES IN THE OVERALL CONTEXT OF BUSINESS. -----------------------------------------------------*CEO'S treat their businesses as portfolios of assets to be bought and sold in an effort to find the right competitive niche, and downsizing and outsourcing in a risky attempt to shrink or transact their way to profit. ------------------------------------------------------*CEO'S In attempts to minimize labor costs, they also do a myriad of other things that weaken or destroy their organizational human resources -----------------------------------------------------------*CEO'S TOO EMPHASIS ON SHARE MARKET PRICES AND NOT THE ACTUAL PERFORMANCE RESULTS , WHICH DEMEANS THE HUMAN RESOURCES. ------------------------------------------------------------------*Lack of continual selective hiring / based on merits. ---------------------------------------------------------------------------*Lack of extensive training of human resources. ------------------------------------------------------------------------*Lack of employees security. ---------------------------------------------------------------------------*Lack of sufficient of decentralization in the organization. ---------------------------------------------------------------------------*Compensation not linked to organization performance. -------------------------------------------------------------------------*Lack of availability of quantity/ quality information in the organization. -------------------------------------------------------------------------*LACK of investment in employees, with such likes of [time/training/facilities/ careers/ etc etc ] ----------------------------------------------------------------------------*Lack of people involvement / commitment. ---------------------------------------------------------------------------------*Lack of sufficient delegation in the organization -responsibilities/accountabilities. -------------------------------------------------------------------------------------*Lack of innovations at the workplace. --------------------------------------------------------------------------------------------------*Lack of contingent compensation. =================================================== *** FIFTH HR SUPPLY FORECASTING -- CONSIDER THE FOLLOWING DEMAND AND SUPPLY IN THE JOB MARKET *************************************************************************** ******* 1.EXPERT -informal internal surveys. managers prepare their own estimates based on workload.

-------------------------------------------------------------------------------------formal external surveys. planners survey managers, using questionnaires or or focused discussion. ----------------------------------------------------------------------------------delphi techniques solicit estimates from a group of managers, until the estimates converge. ============================================ 2.TREND PROJECTIONS -extrapolations extending past rates of change into the future. ---------------------------------------------------------------------------------indexation matching employment growth with , say, sales. ----------------------------------------------------------------------------------statistical analysis ================================================= 3. OTHERS -planning and budgeting systems based on strategic and corporate plannings/ budgeting. ---------------------------------------------------------------------------------------new venture analysis making comparisons with similar operations. -------------------------------------------------------------------------------------computer models using multiple variables. ================================================= ***SIXTH HR DEPARTMENT IS A SUPPORT FUNCTION. HENCE HR PLANNING RELIES HEAVILY ON THE ANNUAL CORPORATE PLANNING, OBJECTIVES, STRATEGIES AND PLANS. *************************************************************************** ************************************ In most companies, HRM is part of senior management. HRM makes contribution to the development of -corporate mission statement -corporate objectives -corporate strategy. Normally the senior management team or TOP management would consists of -ceo or managing director -corporate planning manager -finance manager -marketing manager -manufacturing manager -sales manager -supply chain manager -HR manager etc. STEP 1[a] TOP management would -evaluate the current [ last 12 months] performance against the objectives / target set previously, which includes return on investment, profitability , etc and also the performance of various departments like marketing, sales, HR, manufacturing, etc etc.

STEP 1 [b] TOP management will also evaluate the current mission,objectives, strategies and policies. ----------------------------------------------STEP 2[a ] CEO or MD will take the summary of the evaluation of the current performance to the board for review. STEP 2 [ b ] Based on the review plus the external environmental factors, the board will make decisions on -new mission statement -new corporate objectives -new corporate governance ------------------------------------------------------------STEP 3[a ]

TOP management will scan and assess the company's external environment --political/ economic/social/ technology. to determine the strategic factors that pose as OPPORTUNITIES / THREATS. STEP 3[ b ]

TOP management will scan and assess the company's internal environment --structure/ culture/resources etc to determine the strategic factors that pose as OPPORTUNITIES / THREATS. STEP 3[ c ] TOP MANAGEMENT will analyze the the strengths / weaknesses of the organization and pinpoint the problems areas that needs attention and the strengths that could be exploited. STEP 4 Based on the above analyses, TOP management will generate, evaluate, and select the best strategic factors. STEP 5 TOP management will review and revise [ if necessary ] the mission statement and corporate objectives. STEP 6 TOP management will generate and evaluate strategy alternatives and objectives. STEP 7 This final corporate mission statement, objectives and strategies becomes the foundation information for the various departments to work out their departmental objectives/strategies/plans. STEP 8 After working out their respective objectives/strategies/plans and the budgets , the departmental managers send their respective information to the TOP management for approval.

STEP 9 On receiving the approved package from the TOP management, the departmental managers develop the implementation plan. STEP 10. NOW you have mission/objectives/strategies/plans/budget/schedules. ====================================================== *** SEVEN IN case of HR, which is a department by itself, MUST discuss with other departments of their expectations/ intentions on HUMAN RESOURCES. *************************************************************************** * This final corporate mission statement, objectives and strategies becomes the foundation information for the HR department to work out your departmental objectives/strategies/plans. STEP A Discuss with the various other departments like sales/ production/ distribution/accounting/ IT etc about their requirements -for manpower -recruitments -replacements -training etc etc Once you get their departmental requirements, HRM develops -HR HR PLANNING Planning includes

CURRENT SITUATION/ ANALYSIS OF COMPANY HR 1.Assessment / Audit of the current manpower profile -numbers -skills -ages -flexibility -sex -experience -capabilities -character -potential and also -normal turnover, -staff movements planned -retirements -succession planning etc. 2. KEY SUCCESS FACTORS OF HR

3. HR [ SWOT ] ANALYSIS -STRENGTHS -WEAKNESSES -THREATS -WEAKNESSES 4. HR MARKET [ DEMAND/SUPPLY] -SKILL AVAILABILITY 5.HR OBJECTIVES 6.HR STRATEGY 7. HR PLANNING These include -Recruitment/ Selection PLAN -Induction / Orientation PLAN -Training / Developement PLAN -Compensation PLAN -Salary administration PLAN -Payroll Administration PLAN -Performance Appraisal PLAN -Performance Management PLAN -Industrial Relations PLAN -Promotions PLAN [ IF ANY ] -Terminations PLAN -Transfers PLAN -Staff amenities. PLAN -retraining plan -early retirement plan -redundancy plan -changes in workforce utilization plan -career path plan -succession plan. -personnel and career plans -------------------------------------------------------------------------FACTORS-YOU MAY WANT TO CONSIDER ANY SPECIAL STRATEGY / PLAN AS PART OF HR PLANNING. Table 1: Principal functions of HR today and in a few years Human capital strategy Talent management Change management Leadership development Organization design Organization development Operational excellence within the HR function Workforce planning Succession planning Industrial relations Risk management -----------------------------------------------------------------CHALLENGES YOU MAY WANT TO CONSIDER HOW YOU PLAN TO MANAGE ANY CHALLENGES, IF ANY OF THESE. ANY EXCEPTIONAL FACTORS YOU WOULD WANT TO CONSIDER.

Table 2: Top human capital challenges organizations face today Acquiring key talent/lack of available talent Driving cultural and behavioural change in the organization Building leadership capability Retaining key talent Increasing line manager capability to handle people management responsibilities Succession planning Increasing workforce productivity Constraints on headcount (making do with less) Encouraging organizational innovation Implementing people changes resulting from changes due to operational performance Measuring the contribution of human capital to business performance Lack of consensus around the organizations strategy/direction Reducing overall human capital costs Resourcing and managing HR issues in new geographies for the company Managing human capital during and after an acquisition or merger Workforce planning Increasing the return on investment in remuneration Coping with an aging workforce ------------------------------------------------------------------------HR BARRIERS YOU MAY WANT TO OVERCOME. HOW YOU PLAN TO OVERCOME , IF ANY Table 3: HR barriers and areas of opportunity for enhancing the HR functions future role Capability of line managers in management of their people Skills /competencies of HR staff Business perception of value which HR can bring Attitudes of line management Technology Business leadership HR functional leadership Reporting structure/HR organization Availability of required skills National/cultural differences Regulatory constraints Unions Diverse workforce Availability of solutions in local market (technology, outsource providers, etc.) =========================================== LASTLY BASED ON THE ABOVE PLANS, YOU DEVELOP HR BUDGET. The elements in HR department budget would vary with -company policy -budget process -company accounting system -nature of the business operation -HR PLANNING etc HERE is a broad set of guidelines.

-recruitment/ selection [ internal/ outsourcing ] -PLACEMENT contractors [external ] -salary/ wages -training/ development [ includes induction/ orientation] -staff benefits -staff amenities -workplace facilities

-workplace safety [ OHS] -salary contingency -workers compensation -staff communication [ includes newsletter/ intranet ] -labor relations [ legal/ investigations] -HR administration -HR travels etc etc. ====================================================== These plans will help to bring supply and demand into equilibrium, not just as a one-off but as a continual workforce planning exercise the inputs to which will need constant varying to reflect the actual as against predicted experience on the supply side and changes in production actually achieved as against forecast on the demand side.