Human Resources Planning

Manpower Planning: Case Study

You are management consultant. Your task is to give a report to your client ABC Hospitals on the number of people needed to be hired and trained to start a 40 bed hospital in a rural area(200 KM from a city) with moderate specialties. Please make few reasonable assumptions. Time given is :45 minutes (30 minutes discussion and 15 minues presentation-no ppt needed)

Topics
1)The Pre-requisite for manpower planning; Manpower planning as an integrated part of business planning; setting manpower standard; Manpower forecasting for managerial staff, technical labor, Integrated Budget for manpower management, Controlling manpower costs.

Workforce Planning
2) Quantitative and qualitative approaches to manpower economy. Mathematical models and manpower planning; An econometric model for national manpower planning; Demographic and ecological models for manpower planning; Mathematical models for staff structure evaluation; Management Science and manpower analysis; Markov Chain models for manpower system; Network models for training and recruiting decision in manpower planning; A stochastic programming model for manpower planning; A simulation model for manpower planning.

Workforce Planning
3) Planning careers: Managing career structures and evaluating maintainable career policies. 4) Developing manpower strategies.

Topics
1)The Pre-requisite for manpower planning; Manpower planning as an integrated part of business planning; setting manpower standard; Manpower forecasting for managerial staff, technical labor, Integrated Budget for manpower management, Controlling manpower costs.

 Manpower Planning or Workforce Planning Why?

Trends - Global Workforce

Changing demographics - accelerated greying in most geographies and younger workforce bulge in India Changing attitude towards work and its role in life Generational differences value shifts Increasing pervasiveness of technology in work and living Interconnectedness of people, countries and societies Geo-political developments Increasing regulatory interventions Changing expectation from employment skills v/s tenure Employability becoming more challenging compared to unemployment

Trends - Global Workforce*United Nations, Morgan Stanley Research, November 2009

Projected Median Age: ( years) in the year 2025 India-30 years China-39 years USA- 39 years Britain- 41 years Japan-51 years

Indias supply of educated talent will rise* Workforce*United Nations, Morgan Stanley Research, November 2009

Millions of People: 2008: High School-5.2 2008: College- 3.6 2009:High School- 9.7 2009: College- 5.9 2010:High School-11 2010: College 7

Overview
Manpower Planning involves getting the right number of qualified people into the right jobs at the right time Strategic manpower (workforce) planning is not limited to hiring and retaining talent, but also anticipating future skill needs to ensure growth and stability

Linked to business, the process involves providing for necessary resource skill mix to meet current and future market demands that keeping changing
It is integral to recruiting, retaining, retraining, redeployment and contingency planning (talent attrition) processes

Definition
Manpower Planning (also referred as Workforce Planning or Human Resources Planning) is the process an organization uses to analyze its workforce and determine steps it must take to prepare for future needs.

The process involves forecasting the future composition of the workforce, conducting the gap analysis between the current staff and the future staff, deciding how to close any gaps, and determining how to best meet the needs through redeployment, training, recruiting, or

outsourcing.

*Source: SHRM

Additional Definitions
A Strategy for acquisition, utilisation, improvement and preservation of an enterprises human resources. - Stainer An integrated approach to performing the planning aspects of the personnel function, in order to have sufficient supply of adequate developed and motivated people to perform the duties and tasks to meet organisational objectives and satisfy the needs and goals of organisational members. - Leon. C. Megginson The development of strategies to match the supply of workers to the availability of jobs at organizational, regional, national or international levels. It involves reviewing current manpower resources, forecasting future requirements and availability, and taking steps to ensure that the supply of people and skills meets demand.

Workforce Planning Model* SHRM

Workforce Planning
The development of strategies to match the *supply of workers to the availability of jobs *organizational, regional, or national level Manpower planning involves reviewing current manpower resources, forecasting future requirements and availability, and taking steps to ensure that the supply of people and skills meets demand

Objectives MPP(Workforce Planning)

Link WP with Organisational Planning Ensure the optimum use of human resources currently employed Assess or forecast future skills requirements Provide control measures to ensure that necessary resources are made available as and when required

Purpose of MPP(WP)
Maintain and improve the organisations ability to attain the goals by developing strategies purporting to magnify the contribution of human resources.

Significance of Strategic WP
Human resources skill gaps in terms of numbers, quality or availability influence and impact an organizations ability to meet its business objectives While resource head count has direct impact on cost, the indirect impact (due to any imbalances) is far more critical for organizations success Apart from determining current adequacy, shortage or surplus, forecasting future resource needs to sustain growth is an imperative Resource planning has a direct link with employee development, multi-skilling and succession planning

The resource pool does not dynamically expand in direct correlation to talent needs (workers affected by layoffs may not meet organizations specific skills)
Growing companies are increasingly challenged to acquire critical talent to achieve long term objectives with specific milestones in the short term

Key Objectives of WP
Assess, forecast and meet the organizations current and future skill needs Analyze resource pool for trends that impact ability to meet requirements Optimize utilization of current human resources employed Provide control measures to ensure necessary resource availability as and when required Support the overall HR Strategy that is aligned to the organizations strategy Help sustain organizational objectives and strategies by enhancing contributions of the human resources

Benefits of Manpower Planning

Provides managers with a strategic basis for making human resource decisions Allows managers to anticipate changes, rather than be surprised by events and make informed choices Provides managers the means of identifying workforce competencies needed in the present and future, and then selecting and developing that workforce It enables a shift from a transactional (incident) mode to a strategic (relationship) mode thereby enabling incorporation of new business developments and changes easily; priorities shift on the basis of collaboration with the business HR and recruiting professionals are viewed more as strategic business partners by the businesses they support Leading or participating in a manpower planning initiative might place you into the organizations strategic business planning process

Workforce Planning as a Strategic Business Tool

Strategic Approach & Value Creation

Understanding of Manpower Planning as a strategic business tool Effectively engaging with key stakeholders to establish real need - asking questions - facilitating choice making Work towards fit with the HR planning process / integral and key part of the enterprises Total Resource Planning Linkage with organizational strategy to create business impact

Key Steps - WP Process

Set objectives/goals for the process Identify and engage key stakeholders

Study the organisations - ethos, vision, mission, values and business strategy
Scan the environment for vital information social demographics, economic, political, technology, customer, industry , competition etc.

Assess current vs. desired skill /competency needs based on business needs
Craft an HR strategy and collaboratively deploy through the line managers Periodically evaluate the process outcomes - direct and indirect

Engaging with Stakeholders

What changes do we see in the industry / line of business? What kind of organization will we be size/structure/services/geography etc.?

What will be our business model?

How is /will value created for our customers / stakeholders (internal / external)?

What part of the value chain (function / process) must be retained inside and what can be outsourced?
What critical people competencies do we need to invest in? How should we differentiate our choices to optimize delivery of value?

HR Environmental Scanning
How are our current competitors (and future players) designing their business model / organization? How do we benefit from labour markets that have a demographic advantage? How do we mitigate risk of being present in labour markets that have significant demographic disadvantages? What will impact our ability to source required talent? How will we bridge the talent gap? What people challenges do we anticipate? What managerial and leadership roles are likely to emerge?

Linkage with Organization Strategy

Using Kaplan & Nortons - Balanced Score Card framework Balanced Score Card (BSC): a framework/lens through which an organisation develops its business strategy and/or reviews strategic gaps. It flows from the organizations vision, mission and values. 4 Perspectives: i. Financial ii. Customer

iii. Internal Business Processes iv. Learning & Growth

In order for organisation to achieve its outcomes on financial and customer measures (inputs), what are the key: - business / learning & development / other functional / people processes that need to be leveraged for accelerated success / and or reducing strategic performance gaps?

Linkage with Organization Strategy

WP is a key input process for the delivery of planned customer & financial outcomes. Choosing approaches for enhancing employee competencies aligning with the process quadrant: - what will be the organization design/structure? - what number of resources are required? - what are the desired skills, competencies and experience? - will they be on organization rolls or outsourced? - what is the total budget available?

Linkage with Organization Strategy

Using McKinseys -7 S model

To ensure superior organization performance and success, alignment needed between 7 internal aspects:
Hard Elements Strategy Structure Systems Soft Elements Shared Values Skills Style Staff

Key process/inputting into highlighted words

Context Indian Pharmaceutical Industry

Low degree of concentration-large number of firms with similar market shares Low level of R&D intensity High level of brand proliferation Consolidation- world wide( Abbott- Piramal , Ranbaxy- Daichi , Pfizer-Wyeth) Need and incentive for Innovation limited by low purchasing capability of the domestic market, price controls, ease of imitation and horizontal product differentiation 20,000 registered units- producing drugs Representative of industries behind the technological frontier * D Kale:

Industry Background
Growing -rapid space in the last 4 -5 years ( McKinsey Report India Pharma 2015 ) CAGR of 16% - period -2007-2011 Gujarat - 40 % -Indias total pharmaceutical production & 17 % exports Employs-500,000 people -across domestic & global firms

Competitive Advantages

Largest numbers of US FDA approved plants outside USA Favoured destination - Pharmaceutical activities( R&D and Clinical Research -front runners). English Speaking work force & low cost R & D Many CROs -setting up Demand for trained & skilled manpower has increased significantly

Skills in demand
Clinical Research Associates Clinical Research Heads Site Monitoring Officers Regulatory Affairs Specialists Regulatory Affairs Professionals

Significant Demand-Supply Gap

Demand for Biotech Graduates(16,950) closely maps with the supply of graduates(17,390) Actual employment -paltry figure of approximately 2,000(barely 12 percent of industry demand)
* Source: Cygnus Business Consulting and Research - August 2009

Demand-Supply Gap
Gap -attributed to 'multiple' factors( migrating abroad for doctoral studies, fundamental 'employability gaps' in graduating students, lack of adequate access to employers) Employability gap attributable to: *inadequate curriculum alignment *insufficient academia - industry Interaction *lack of awareness of -'what constitutes employability'.

Erosion of competitiveness
Higher than acceptable rate of attrition Rising employee costs Global- attrition @ 10 to 12% India- annual employee churn- @30-35 %(Field level) & @8 -10%- Managerial level. Higher in large scale industries (25 %) compared to small scale industries (20.6 %).

Steps in Workforce Planning

Steps
Aligned to organizational goals and objectives:

1.
2.

Determine and project current supply of resources

Forecast future demands for resources through needs analysis

3.
4.

Compare forecast needs with supply projection

Plan and implement programs / policies

5.

Evaluate effectiveness of plan and process

Needs Analysis Process

1. Supply Analysis Considers the skill mix in the organization as it exists now and projects the future needs based on anticipated business growth or retention. Nominal attrition is taken into account in considering future supply. 2. Demand Analysis Considers the model organization of the future and its human capital needs. Based on supply analysis input, data can be compared to identify skill and number gaps. 3. Budget Analysis Considers how the organization will achieve cost-effective staffing. 4. Strategic Analysis Considers how the organization will get what it needs.
*Source: SHRM

Projecting Needs
Consult with the line managers to examine skills and time utilization to determine ways the organization can use its existing human resource capabilities more fully. This will help analyze whether: Employees are using their time appropriately Work should be reallocated to optimize skill utilization

Jobs need to be redesigned

Productivity rates are changing Current staff has the ability to achieve the desired outputs Staff growth is exceeding the expansion of outputs The staff has rights kinds of skills Skills are not being applied or are missing
*Source: SHRM

Forecasting: Supply Side

Factors to consider:

Absenteeism
Leave Capability to retain talent

Internal movements job rotations, transfers, promotions etc.

Changes in work timings, other conditions of work Changes in policies and terms of engagement Use of technology

Forecasting: Demand Side

Factors to consider:

Economic and Political climate

Market / Industry / Competition trends Law and regulation

Technology changes
Social and demographic factors New positions or skill sets needed Positions to be changed, eliminated or left unfilled Job design needs, organizational structure changes, job sharing Adjustments in contracted labour and supervision

Understanding Attrition
Lower salaries, lack of growth opportunities & emerging perception of instability of Industry Marketing & Production - highest attrition rate @ 22 %) Highest attrition- employees( age - 20-25 Y-large scale organization) & (age - 26-30 yearsY-SSI) Women employees- lower attrition, but higher absenteeism

Workforce Planning in context of specific Business Scenarios

Different Sourcing Models deployed by the firms

India Business Models Captive Models Pure Captive Model An internal cost center or a 100% subsidiary company set-up to execute offshore business processes and/or IT services Amex, Dell, Standard Chartered, HSBC, Ford, Sun Strategic Alliance/Joint Venture Models Joint Venture (JV) Joint Venture with equity participation from customer and vendor. Customer retains control due to investments in entity. British Telecom Mahindra BOT and Inverted BOT Where the Indian Provider sets up facility and provides implementation support to start with Customer can buy out at a predetermined stage Reverse scenario has also been seen in the market Aviva-WNS/EXL,24/7, AIGPolaris
Source:::: KPMG::: Slides 28 to 44

Outsource Model Pure Outsource Use of a India-based provider to offshore business processes or IT services Managed Outsource Full-/part-time resources on the ground in India to facilitate transition, relationship mgmt and transfer of organization and domain knowledge to third party providers

44

The Human Resource Advantage in INDIA : very young and dynamic workforce

500 million+ people born after 1980 272 universities and

nearly 14,000 colleges in India India produces 3 million graduates, 700,000 post-graduates and 1,500 PhDs every year year in the three southern states, 30,000 every year from Karnataka alone Largest pool of educated and English-speaking people in the world

54% below 25 years

600 60 500 50

400

Proportion of population below 25 years (% RHS)

40

300 Absolute population below 25 years (m)

30

200

20

75000 engineering graduates every

100

Source: CLSA

10

Indi Chi Indon US Bra Jap Germ a One na esia zil an any quarter of the worlds youth live in
India By 2013, the net addition to the productive population (aged 25-44 years) will be 91 m, or 33% That is an addition of 1/3rd of USAs current population or five new Australias in the age group 25-44

45

..resulting in the upward trends in Off-shoring The changing service portfolio

growing with innovation building on the first wave

Domain expertise Total Cost of ownership (TCO) Total Time to Market (TTM) Product codevelopment Product ownership KPO Large deals

Body shopping / Staff augmentation Compliance formulations

Legacy Maintenance Shift from onsite to offsite Quality Assurance Emergence of ITES such as BPO, call centres Moving towards products and embedded software

46

The case of Indian IT and ITES Industry

Information Technology (IT)
Application Development Application Support & Maintenance Infrastructure Services Engineering/ Design Services System Integration & Consulting

Business Process Outsourcing (BPO)

Human Resources Finance and Accounting Back Office Administration Payment Processing CRM Tech Support Knowledge Process Outsourcing

47

with global service delivery becoming a mainstream phenomenon

$ Billio 800 n
700 600

Total Offshore IT Services Revenue

$ 70 Billio n
60 50 40

Total Offshore BPO Services Revenue

500
400 300 200 100 0 2004 2005 2006 2007 2008 2009

30
20 10 0

India Offshore IT Services Revenue India Offshore BPO Revenue

Global BPO Revenue 48

Global IT Services Revenue

Source: neoIT

Today, several large global corporations source IT-ITES from India

Research / Analytics/ Engineering Shared Services (IT / HR / FA) Customer Relationship Management Back Office Processing

Data Entry / Transcription

BFSI

ICT

Auto

Healthcare

Others

across industry verticals and business functions

49

While cost advantage was the initial attraction

Significantly favorable total transaction cost economics Gross savings on factor cost up to 78% Net realized savings ranging between 25-60%

Source: NASSCOM, E-value serve Analysis Blended rate for voice and non-voice operations

PROCESS
COST ELEMENT
USD / FTE / Year Value

ACHIEVED SAVING 25%-40% 30%-40%

US
Share Value

INDIA
Share

SAVING
On US Cost base

Transaction Processing Accounting / Contact Center Services

Personnel Costs 42,927 IT/ Telecom Costs 2,400 Office Facility Costs 3,700 6.3% 1,991 15.2% 46% 4.1% 3,770 28.7% -57% 73.3% 6,348 48.4% 85%

IT Services
Finance / Insurance Digital Content Software/ ERP / Analytics
Source: GECIS

25%-50%
40%-60% 30%-50% 40%-60%

Other G&A Expenses

9,571 1012.5 16.3% 7.7% 13,121 100% 89% 78%

50

Total Cost

58,598

100%

access to a large, highly qualified pool of talent is the real force

Over 60 years Indian Demographic Profile 7.0%
100% > 1 billion
292,000 195,354

Undergraduate engineering degrees granted in 2003

20-59 years

47.9%

103,440

82,409

60,914

45,145

0-19 years

45.1%
India China Japan Russia US South Korea
1,045

Source: NCAER, Registrar general of India

1,200 '000s 1,000

Favourable demographic profile High annual graduate turnout Attractive employment prospects
beyond monetary compensation Rapid scaling up of employment in the sector

842
800 600

670 522 430 284 160 56

400 200 0 1990-91 1996-97

1999-00

2000-01

2001-02

2002-03

2003-04 2004-05 E

Source: NASSCOM

51

Food for thought

Questions to be asked :

Is my recruitment machinery geared up to recruit multiple times the numbers that I am hiring toady? (Sourcing Strategy) Am I developing middle managers of tomorrow today? (Middle Management Development) Am I making a compelling employment promise and delivering it? (Employer Branding) Are all my associates motivated and aligned to organisations goal? (Employee Engagement) Do we communicate effectively and regularly (Employee Communication) Are our associates living and breathing the same promise and commitment? (Culture & Values)

52

And hence there is an urgent need for Workforce Shift in India

India need to develop a skilled labor force to achieve Workforce Development aligned to economic realities The Situation today
Limited linkage of Workforce Development Systems to Labor and Market economic needs Inefficient Public Education System Uncertain Employee Career Path No ongoing support for lower rung of workers Fragmented Governance Structures

The Future Vision

Establish Linkages from Economic Needs to Workforce Development Develop Talent with strong Foundational Skill Help workers in career management Strengthen work support systems Create the framework for correct Governance and Accountability

53

Point of View on the Future Workforce

The workforce is in the midst of a dramatic transformation There will be a huge demand of unskilled and semi-skilled workers from country like India to get absorbed in the first world nations Demographic, economic, socio-political, and technological shifts are driving five workforce trends: Smaller and Less Sufficiently Skilled Increasingly Global Highly Virtual Vastly Diverse Autonomous and Empowered

Small er

Empo wered
Diver se

Unstop pable Trends Virtu al

Globa l

54

Address the complete value chain differently for better employability (slide 1 0f 2)
Parents, Friends, Society

Primary School

Secondary School

College Education

Employment Opportunities

Students

Students

School Education

Employers

Dept. of School Education

Dept. of Higher Education Dept of Technical Education

Employment Exchange Dept. of Labor

Dept. of Industry Dept of Commerce Dept. of IT Other departments

Department of Planning Department of Finance

55

Address the complete value chain differently for better employability (slide 2 0f 2)
Parents, Friends, Society

Supplier

Input

Process

Output

Customer

National Council and Nodal Agency for workforce development Various industry departments supporting nodal agency

Raw Talent and Growth projections Workforce forecasts by various skills

Identify master skills Identify special skills Align educational inputs

Trained Workforce as per industry needs

Economy Various industry sectors

Department of Planning and Finance, Government

56

Company Level - Future of Talent Management

A radically different workforce requires a rethinking of approaches to managing talent

To remain competitive, organizations must adopt:

Predictive Workforce Monitoring and Strategic Talent Decision Making Flexible and Anticipatory Talent Sourcing Customized Rewards and Communications Distributed and Influential Leadership Unified and Compassionate Cultures

Unifie d Cultur es Distri buted Leade rship

Predic tive Monit oring Talent Implica tions

Flexib le Sourci ng Custo m Rewar ds

57

The organizations have to Align their People Strategies to stay competitive

There are challenges and potential for improvement in all the four areas
Candidate Experience OnBoarding Processes Succession Management Performance Management

Communications

Organizations need to focus on Align to create the greatest leverage

Source

Align

Engagement

The firms able to tackle all the areas would emerge as successful in the long run

Base Pay

Reward

Develop

Promotions

Short-Term and LT Incentives Benefits Recognition

Training HighPotentials Development

HR Strategy-HR Structure-HR Roles-HR Delivery/Technology

58

And finally, the Brand Promise will be delivered through employees

The Organization Employee Promise Brand Alignment

Customer Perceived Value

The External Brand

Customer Promise

Holistic Package of Goods and Services Some of the benefits are real, other are intangible, and even imaginary

The Customers

Its employees who make brands come alive for their organizations!

The Employees 60 60

 2) Quantitative and qualitative approaches to manpower economy. Mathematical models and manpower planning; An econometric model for national manpower planning; Demographic and ecological models for manpower planning; Mathematical models for staff structure evaluation; Management Science and manpower analysis; Markov Chain models for manpower system; Network models for training and recruiting decision in manpower planning; A stochastic programming model for manpower planning; A simulation model for manpower planning.

Workforce Forecasting
Demand side: Process of estimating the future quantity and quality of people required Factors to be considered - both internal and external External factors -refer to economic climate, market trends, competition, law and regulation, Technology changes, social and demographic factors.

Workforce Forecasting
Supply Side: Measures the number of people likely to be available from within and outside an organisation Factoring : *in absenteeism *capability to retain talent *internal movements & promotions *changes in work timings & *other conditions of work & *identifying jobs -likely to be redundant into the future of the Planning horizon.

WP & Business Scenarios

Impending M& A and Post M&A Planned redundancies Entry- new geographies/markets- India & outside Competitor Activity Geo-Political changes Changing Regulations-India & outside eg: FDA, Global Trade negotiations Sales-not in line with forecast Industrial Relations( settlement with workers)

WP & Scenarios
How flexible , are the people resources, nature of deployment & skill profiles, in responding to favourable and unfavorable developments in the business environment? In an inorganic move, what are the new skills that are strategically important for us to pay attention and enhance retention? what are some of the redundancies that are likely to flow from one roletwo persons ? What is the degree of risk associated with Industrial Relations going awry & dependency on sole manufacturing unit(s)?

WP Models
Technique of using opinion or informed judgment Matrix models- executive and management manpower planning. Quantitative techniques: *three categories: statistical methods, operations research methods, and network techniques. Computer simulation models ( including the Weber model) *10 criteria

Managerial Judgment
Most typical method for smaller organisations Managers simply sit down, think about their future work load and how many people they need Adopts both the bottom-up' and top-down approach Delphi Technique- an example

Work Study (O&M)

Apply work measurement to know how long operations should take and the amount of labour required Industrial Engineering/Organisations & Methods Work-load Analysis *Work-force Analysis * Time and Motion Study

Work Study..
In work load analysis the manpower expert needs to find out: *sales forecasts, work schedules and thus determine the manpower required per unit of product In work-force analysis:
* Factoring in -margin for absenteeism -labour turn over & -idle time on the basis of past experience

Statistical methods
It is the technique of using high speed computers and new mathematical techniques The main statistical tools are *Ratios and Trend analysis *Regression analysis *Bureks -Smith model

Ratios & Trend Analysis

Ratios, which are calculated for the basis of past data relating to number of employees -in different levels Future manpower requirement is calculated on the basis of established ratios Depends on accuracy of records and realistic estimate of future activity levels and the effect of improved performance

Regression Analysis
The technique is used to estimate the workforce requirement of an organization's at a future point of time Used when dependent and independent variables are functionally related to each other

Burek Smith Model

Mathematical model -developed for personnel forecasting En = (Lagg+G )1/x Y *En it is estimated level of personnel demand inn planning period *Lagg - it is overall turnover or aggregate level of current business activity in rupees. *G- is the total growth in business activity *anticipated through period n in terms of rupees. *X-it is the average productivity improvement *Y-is conversion figure relating todays overall activity

Delphi
The objective of the Delphi technique is to *predict future situations by integrating the independent opinions of experts A major goal of the Delphi technique is to *avoid direct confrontation of experts *some individuals may be unduly influenced by others because of status differences, resulting in compromise of good ideas

Nominal Group Technique

Group of Individuals- meet face to face-to forecast ideas and assumptions and priorities ideas

Manplan
MANPLAN was developed by General Electric to overcome human resource modelling problems (such as the overwhelming mathematical complexity that can be brought into such planning efforts). Merit of MANPLAN is that running - computer model is relatively inexpensive

Manplan -GE
This computer program needs for its forecast, asking such questions as: * How many different product lines do you manufacture? * How many months does your forecast cover? Once these questions are answered and fed into the computer, the computer can produce: *forecast estimating average human resource levels required to meet product demand- also provides for ranges of possible human resource needs for any period

Markov Models
The information for forecasting internal supply can often be treated as: * if it were independent of the external environment and * is often available within the firm Matrix representing the probability of transition from one job classification to another can be prepared for the relevant classifications *Markov-chain theory can be used to generate a forecast of internal manpower supply.

Markov Models
Assumption: future employees in any level of the organisation are determined not so much by the numbers that are required BUT by the promotions & recruitment encouraging movement up through the system Hence known as Push model *Young & Almond model- example Employee in a particular rank has a fixed probability of promotion in a given year Employees receiving promotions depend on the number of eligible staff in the rank below

Markov
There is no requirement for a vacancy to exist in the higher rank Central equation: n(t+1)=n(T)P +R(t+1)r n(T)- vector of stocks at time t: number of employees in each rank/level P: matrix of transition probabilities between each pair of ranks r: vector of probabilities of a recruit starting off in each particular rank/level R(t): number of new recruits at time t

Renewal Models
Basic assumption-requirements are made by changes in promotions and recruitment rates Employees are pulled through the system to meet pre determined requirements Hence- known as pull models Useful when future manpower requirements are known within reasonable limits & what flows are required to meet the must be identified

Renewal Models
Push and Pull methods- used independently has limited value Now being used in combination Disadvantages: *Highly mathematical- becoming more complex * Non savvy HR Managers- find challenges * Many mathematically savvy Managers are not in HR

Scope of the Topic

To develop the analytical abilities for understanding the implications of continuous changes in the manpower situation of KEC and so as to advise and assist the authorities concerned in their Manpower planning and development activities.
To enable the employees/HR to acquire the knowledge and skill necessary for preparing the manpower plan of a SBU, or to understand such a plan drawn up by it.
Advantages of Manpower Planning: Checks - corporate plan of the organization. Identifies - Shortages and surpluses Guides - Recruitment and selection programmes Reduces - Labour cost Identifies - changes in technology, marketing, management etc. and the consequent need for new skills and new categories of employees. Identifies - and plan for physical facilities and proper working conditions. Identifies - the available talents - develop those talents. Helps in growth and diversification of business.

Manpower planning procedure

Analysing the current manpower inventory -Type of organization -Number of departments -Number and quantity of such departments -Employees in these work units Demand forecasting -Expert Forecasts -Bottom up technique -Delphi technique -Nominal group technique -Ratio analysis -Regression analysis Supply forecasting Internal Supply -Transfer -Promotion External Supply -Campus -Web -Advertisement -Partners in progress Developing employment programmes Design training programmes

Making future manpower forecasts

Aspects to be considered for MPP

Internal Environment (Micro) Organizational Objectives Production Organizational Structure Finance

External Environment (Macro) Technological Customers Human Resources in the country Social including religious Economic Political Governmental Legal

Challenges of MPP
The future is uncertain Cautious attitude of top management Problem of surplus staff Time consuming activity Expensive process

Project Planning
Steps in project planning: -Defining the milestone -Detailing of activities -Setting timeline- both start and end date -Allocating resources -Monitoring and control

Gantt chart:
A Gantt chart is a type of bar chart that illustrates a project schedule. Gantt charts illustrate the start and finish dates of the terminal elements and summary elements of a project.

 Human Resource Audit

What is a HRD Audit* HRD Score Card 2500 (Dr TVRao )

Comprehensive evaluation Current HRD systems and strategies, structure and competencies, culture , and impact in the context of short term and long term business plans of an organization Attempts to assess-competency requirements of employees to achieve the plans

What is a HRD Audit* HRD Score Card 2500 (Dr TVRao)

In the context- competency requirements, the following assessments: 1)The competencies needed at present 2)Existing systems to develop these competencies 3)The adequacy/inadequacy or maturity levels of these systems 4)Existing structures and competencies and their adequacy/inadequacy 5)Commitments levels exhibiting mechanisms- to further it or build work motivation 6)Work culture and methods of building the same

Why would an organisation undertake a HRD Audit?

Focus of the audit* Dr TV Rao

Culture building strategies Quality and customer orientation Communication strategy Efficiency management and cost reduction strategy Employee engagement strategy

HRD Audit dimensions*Dr TV Rao

HRD Systems and Strategies- 840 + 160 points a)HRD Systems: Objectives, Structure, Understanding implementation and Business relevance of workforce planning , Performance Management, Training, Recruitment t, OD & Self renewal b)HRD Strategies: Quality, Cost, Customers, Culture Building, Entrepreneurship, communication & commitment

HRD Audit dimensions*Dr TV Rao

HRD Competencies: 200+100+100+60+40 points a) Competencies of HRD staff b) Learning attitude of Line Managers c) Empowering styles of Top Management d) Learning orientation of Non- Supervisory staff e) Credibility of HR Department and its Activities

HRD Audit dimensions*Dr TV Rao

HRD culture and values: 160 + 340 points a)OCTAPACE Values b) Organisation Culture HR Impact and Alignment: 250+200+50 points a) Talent Management b) Intellectual Capital c) Financial contributions

Who will do the Audit

External Internal Internal team HR specialists In house team or internal taskforce Line Managers and HR specialists In house team- no HR specialists

Methods of Audit
Interviews Group discussions/workshops Observation Analysis- records and documents Questionnaire

Dimensions of the Audit

Extent of clarity of objectives ( 1/10 points) How well structured is the system? How complete and scientific are the elements?How comprehensive are they?( 2/20 points) How well are they understood?(1/10 points) How well are they implemented?(2/20 points) Are they resulting in tangible achievement of business goals: Extent to which it meets organisation goals( 1/10 points)

Each dimension/sub dimensions

Definition Criteria Standards *Workforce planning as and example:

Workforce planning
1) Clarity of objectives: Extent of clarity, existence of documentation, efforts made to clarify, comprehensiveness/coverage of efforts 2) Extent to which the process is well structured : situation analysis, workforce demand analysis, workforce supply, workforce plan 3) Extent to which it is understood: awareness, understanding of the objectives, understanding of the functioning of the system & understanding the benefits of the system 4) How well it is implemented: objectives, design and structure, implementation and functioning & benefits derived

SHRM metrics/templates
Mtrics provide a number of factors that can be measured to show how HR contributes to the business. Measures such as absence rate, health cost per employee, and HR expense factors show that HR has a sense of the importance of human capital measurement in supporting business objectives. The following calculators are basic HR and business metrics to help measure your companys absence rate, cost per hire, the value of your human capital and human capital return on investment. These calculators are not meant to be an all-inclusive listing of HR or general business metrics, only a listing of most commonly used metrics. More comprehensive guides, titled How to Measure Human Resource Management, by Jac Fitz-enz and Barbara Davison, and Investing In People: Financial Impact Of Human Resource Initiatives are available for purchase at the SHRM Store.

Sample- Diversity
Average Employee Age The average age of an organizations total employee population Diversity Hire Ratio The percentage of individuals hired externally who self-identified as a member of a diversity category (i.e. Disabled, minority, etc.) Diversity Percentage The number of employees who self-identified in a diversity category as a percentage of total headcount Percentage Diversity At Executive Level The number of executive level employees who self-identified as belonging to a diversity category (i.e. Disabled, minority, etc.) Percentage Diversity At Management Level The number of management level employees who self-identified as belonging to a diversity category (i.e. Disabled, minority, etc.) Total Females As a Percentage of Headcount The number of executives who are female as a percentage of headcount Percentage Females At Executive Level The number of employees who are female as a percentage of headcount Total Females at Management Level The number of management employees who are female as a percentage of headcount

HRM standards *SHRM website

Representing more than 250,000 members in over 140 countries, the Society serves the needs of HR professionals and advances the interests of the HR profession. Consistent with SHRM's role in promoting professionalism in the HR field, the Society began an intensive effort to sponsor the development of organizational standards in 2009. SHRM's intent was to capture and codify the threshold customs, procedures, and practices of our most effective practitioners in HRM. This meant assembling interested parties whether they be members, non-members or laymen to the HR field. Through our relationships with both the American National Standards Institute (ANSI) and the International Organization of Standardization (ISO), SHRM has spearheaded the establishment of professional HR standards in the United States and around the globe.

Published Standards
ANSI/SHRM 06001.2012, Cost-per-Hire Designed as a tool to allow an organization to determine accurate and comparable costs of recruitment through a standard algorithm to calculate the recruiting costs to be incorporated into cost-per-hire. Standard is structured at a high level. Specific consideration and responses are also addressed for consideration by individual organizations based on specific hiring environments and requirements. Errata: On page 16 of the standard, in Table 4, the first column should be labeled "Internal Costs", not "External Cost http://www.shrm.org/HRStandards/PublishedStandards/Pa ges/ANSISHRM060012012,Cost-per-Hire.aspx

Published Standards
ASIS/SHRM WPVI.1-2011, Workplace Violence Prevention and Intervention Standard (In conjunction with ASIS) Provides an overview of general security policies, processes, and protocols that organizations can adopt to help prevent threatening behavior and violence affecting the workplace and better respond to and resolve security incidents involving threats and episodes of actual violence

Published Standards
Provides an overview of general security policies, processes, and protocols that organizations can adopt to help prevent threatening behavior and violence affecting the workplace and better respond to and resolve security incidents involving threats and episodes of actual violence. Standard presents practical definitions of workplace violence that includes a continuum of problematic behavior, and that classifies incidents based on the relationship of perpetrator to victim. It outlines security prevention and intervention strategies as well as the procedures for detecting, investigating, managing and addressing threatening behavior or violent episodes that occur in a workplace or in association with it or its employees. Standard is based on the ASIS International Workplace Violence Prevention and Response Guideline. ww.shrm.org/HRStandards/PublishedStandards/Pages/ASISSHRMWPVI12011.aspx

ELEMENTS FOR HR SUCCESS

SHRMs competency model ONE technical competency and eight behavioral competencies
Human Resource Technical Expertise and Practice the ability to apply the principles and practices of human resource management to contribute to the success of the business. The eight behavioral competencies, listed and defined below, allow human resource professionals to leverage their technical competence to contribute to organizational success. Relationship Managementthe ability to manage interactions with and between others with the specific goal of providing service and contributing to organizational success. Consultationthe art of providing direct guidance to organizational stakeholders (e.g., employees and leaders) seeking expert advice on a variety of situations or circumstances. Organizational Leadership and Navigationthe ability to direct initiatives and processes within the organization with agility and to gain buy-in from stakeholders. Communicationthe ability to effectively exchange and create a free flow of information with and among various stakeholders at all levels of the organization to produce impactful outcomes. Global and Cultural Effectivenessthe art of managing human resources both within and across borders and cultures. Ethical Practicethe integration of core values, integrity and accountability throughout all organizational and business practices. Critical Evaluationskill in interpreting information (e.g., data, metrics, literature) to determine return on investment (ROI) and organizational impact in making business decisions and/or recommendations. Business Acumenthe ability to understand business functions and metrics within the organization and industry. .

http://www.shrm.org/HRCompetencies/Pages/Model.aspx

**This competency model is designed for developmental purposes only and is intended as a resource for HR professionals

How to read the full competency model Each competency has five distinct components: Title. A distinct competency title Definition. A one-sentence-long overall definition Sub-Competencies. Competencies related to and/or subsumed by the relevant general competency. Behaviors. A list of defining behaviors that are demonstrated by individuals at the highest level of proficiency on the indicated competency Proficiency Standards. Standards for proficiency at the four career stages (entry, mid, senior, and executive). Each proficiency standard represents a behavioral standard in which an HR professional at the relevant level should engage to be successful.

D Ulrich & W Brockbank

The 2012 Human Resource Competency Study is touted as the largest global study ever on human resource professionals, and it includes data from 20,000 respondents from around the world. In it, the researchers from Ulrichs RBL Group and the University of Michigan Ross School of Business found that HR managers play an integral role in the overall effectiveness of a companys performance. The survey went on to point out six specific competencies that successful HR professionals must be:

2012 Human Resource Competency Study

Strategic positioners who understand evolving business contexts, stakeholder expectations and business requirements, and be able to translate them into talent, culture and leadership actions. Credible activists who build relationships of trust and have a clear point of view about how to build business performance. Capability builders who define, audit and create organization capabilities required for sustainable organizational success. Change champions who initiate and sustain change at the individual, initiative and institutional levels. HR innovators and integrators who look for new ways to do HR practices and integrate those separate practices to deliver business solutions. Technology proponents who use technology for efficiency to connect employees and to leverage new communication channels, such as social media.

2012 Human Resource Competency Study

We can empirically show that when HR professionals demonstrate these six competencies, they are seen as personally effective and they impact business performance, said study co-director Wayne Brockbank, a professor at Michigan Ross and director of its Center for Strategic HR Leadership

HR Audit
Audits of business personnel budgeting objectives and need Human resource accounting meaning and definition and recent trends in industry, treatment of people as assets Audit of executive turnover study of attrition rate in industry and across industry, causes and analysis. Auditing of IR settlements and negotiations Auditing of Industrial Committee Management meaning and scope

HR Audit
Costs Involved - budgeting Recruitment, Training & Job evaluation meaning, scope, design, analysis Compensation Planning need, how, why, when in an organization

Job Analysis Defined

Job analysis is the process of studying jobs to gather, analyze, synthesize and report information about job responsibilities and requirements and the conditions under which work is performed.
Modified from Heneman and Judge (2009)

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Historical Perspective
Frederick Taylor (1911) Scientific Management
Replaced rule-of-thumb work methods with scientific study. Scientifically select, train and develop workers. Cooperate with workers to ensure that scientific methods are followed. Divide work such that managers apply scientific principles and workers implement them. Find the one best way to accomplish any task. Utilized time and motion studies to analyze tasks.
SHRM 2009 118

Historical Perspective
Elton Mayo (1927-1932) Hawthorne Studies
Informal organization affects productivity. Work group norms affect productivity. The workplace is a social system. Work is more than tasks and duties.

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Organizations in the New Millennium

Evolving work methods. Organization structure. Reporting relationships. Global demands. Knowledge workers.

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Foundation of all HR practices

HR Planning
Legal Compliance Staffing

Employee Relations

JOB ANALYSIS

Training

Rewards Safety & Health

Performance Management

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Foundational
HR planning:
Work design. Skills required.

Training:
Training needs for new employees. Training program content. Training evaluation.

Staffing:
Advertising in labor market. Selection criteria. Selection methods. Succession planning.

Performance management:
Performance standards. Evaluation criteria. Appraisal forms and methods. Feedback and communication with employees.

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Foundational
Safety and health:
Training required. Protective equipment needed. Hazard communications. Accommodations for medical impairments.

Employee relations:
Work rules, policies and procedures. Clear lines of authority and responsibility. Union work settings.

Legal compliance:
Recordkeeping. Accommodations. Training. Compensation practices. Equal employment practices and affirmative action.

Rewards:
Value of each job for compensation purposes. FLSA status. Pay adjustments.

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Information Collected
Data, people, things. Tasks or job functions:
What gets done on the job. Essential functions.

Scope of responsibility:
Supervision received. Supervision provided.

Tools and equipment used on the job:

Computer software. Hand tools. Job-related equipment.
SHRM 2009 124

Information Collected
Work context and environment:
Physical environment (discomfort, hazards). Work schedule (hours, days). Travel required.

Social/relationship factors:
Nature of social contacts. Level of social contact.

Decision-making authority:
Judgment and discretion.
SHRM 2009 125

Information Collected
Personal and physical demands of the job:
Stand, sit, reach, lift, walk.

Knowledge, skills and abilities required to perform job tasks:

Education. Experience.

Certification (desired) and licensure (required):

Certification (HR). Board licensure (physician, engineer).
SHRM 2009 126

Job Requirements Matrix

Tasks
Specific Tasks Task Dimensions Importance (% of time) Nature

KSAs
Importance to tasks (1-5)

Arrange schedules with office assistant to ensure that office is staffed. Assign office tasks to office assistant and volunteers. Type/transcribe letters, memos and reports.

Supervision

30%

Knowledge of office policies and operations.

4.9

Supervision

Knowledge of office policies and operations.

Word processing

20%

Knowledge of typing formats and software.

3.1

See Exhibit 4.3 on page 151 of Heneman and Judge, Staffing Organizations, 2009.
SHRM 2009 127

Data Sources
Job incumbent Supervisor or manager Former jobholders Job analyst Subject matter experts (SMEs) Industry resources Professional organizations like SHRM
128

SHRM 2009

Dictionary of Occupational Titles

Dictionary of Occupational Titles is now online on O*Net. Comprehensive searchable database:
http://online.onetcenter.org

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O*Net Homepage

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Data Collection Methods

SHRM 2009

Observation Work sample Work diary Interview Questionnaire Perform the job Background records Multiple methods
131

Outcomes of Job Analysis

Job description:
Systematic, detailed summary of job tasks, duties and responsibilities. Assures that employees and managers are on the same page regarding who does what.

Job specification:
Detailed summary of qualifications needed to perform required job tasks.

Performance standards:
Establishes the level of satisfactory performance.
SHRM 2009 132

Job Description
The job description should include at least the following elements:
Job title. Job code. FLSA status. Job summary. Essential job duty task statements. Job context or any unusual elements. Date created. Revision number and date.
133

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Job Specification
The job specification should include at least the following elements:
Job title. Job code. Job summary. Knowledge required to perform job. Skills required to perform job. Abilities required to perform job. Education required. Experience required. Licensure required or certification desired to perform the job. Date created. Revision number and date.
SHRM 2009 134

Performance Standards
Performance standards define the level of expected quality and quantity of work produced on the job. Line managers input in developing performance standards is essential. Standards must be consistent and reasonable.

Performance standards help the employee gauge performance on the job.

SHRM 2009 135

 Human resource accounting meaning and definition and recent trends in industry, treatment of people as assets

 -American The American Accounting Society Committee on Human ResourceAccounting defines it as follows: Human Resource Accounting is the process of identifying andmeasuring data about human resources and communicating this information tointerested parties. In simple terms, it is an extension of the accountingprinciples of matching costs and revenues and of organizing data tocommunicate relevant information in financial terms. Association Committee :

10 important Objectives of Human Resource Accounting :

a. To facilitate effective and efficient management within an organisation for human resources. b. To provide information of changes in the structure of manpower to the management. c. To provide basis to the future investors in making better decisions about investment in human resources. d. To provide qualitative information on human resources. (HR) e. To measure the costs incurred on human resources by firms. f. To evaluate the return on investment on human capital. g. To communicate the organisation and the public at large about the worth of human resources of an organisation. h. To know whether the human resources have been properly utilised and allocated. i. To help the persons interested in the human resources are giving a return equivalent to their worth or not. j. To help in development of Management principles by clarifying the financial consequences of the various practices.

http://www.preservearticles.com/2012051932547/10-important-objectives-of-human-resourceaccounting.html

 Sir William Petty was the pioneer in this direction. The first attempt tovalue the human beings in monetary terms was made by him in 1691. Pettyconsidered that labour was the father of wealth and it must be included in anyestimate of national wealth without fail. Further efforts were made by WilliamFar in 1853, Earnest Engle in 1883. The real work started only whenbehavioural scientists vehemently criticized the conventional accountingpractice of not valuing the human resources along with other resources. As aresult, accountants and economists realized the fact that an appropriatemethodology has to be developed for finding the cost and value of the people tothe organization. For a long period of time, a number of experts have worked onit and produced certain models for evaluating human resources.

Historical Development Of H.R. Accounting

Eric G Falmholtz First stage (1960-1966)- Beginning of academic interest in the area of HRA Second stage(1966-1971)- The focus here was more on development and validating deferent models Third stage(1971-1976)- This period was marked by a widespread interest in the field of HR R.G. Barry experiments contributed substantially during the stage Fourth stage(1976-1980)- This was the period of decline in the areas of HRA 5 th stage(1980 onwards)- There was a sudden renewal of interest in the field of HRA

Methods Of HRA : Cost approach Economic value approach

COST APPROACH HISTORICAL COST OPPORTUNITY COST REPLACEMENT COST The historical cost of human resources is the sacrifice that was made to acquire and develop the resource a calculation of what would have been the returns if the money spent on HR was spent on something else the cost that would have to be incurred if present employees are to be replaced. Assumptions Underlying HR Accounting : People are valuable organizational resource Human resource value is influenced by management style HRA information is needed

ECONOMIC VALUE APPROACH

PRESENT VALUE OF FUTURE EARNINGS COMPETITIVE BIDDING MODEL VALUE TO ORGANIZATION Value of an individual is the present worth of the services that he is likely to render to the organization in future an internal market for labor is developed and the value of the employees is determined by the managers. Managers bid against each other for human resources already available within the organization. The highest bidder wins the resource. This method helps in determining what an employees future contribution is worth today.

 Monetary value based approaches: i) The Lev and Schwartz Model ii) The Eric Flamholtz Model iii) Morse Model

The Lev and Schwartz Model(1971):

the value of human resources is ascertained as follows 1. All employees are classified in specific groups according to their age and skill. 2. Average annual earnings are determined for various ranges of age. 3. The total earnings which each group will get upto retirement age are calculated. 4. The total earnings calculated as above are discounted at the rate of cost of capital. The value thus arrived at will be the value of human resources/assets. 5. The following formula has been suggested for calculating the value of an employee according to this model CONT.. Vr = Tt=r I(t)/(1+r)t-r, Where, V = the value of an individual ryears old. I(t) = the individuals annual earnings upto the retirement t = retirement age r = present age of the employee R = discount rate: CONT.. Vr = Tt =r I(t)/(1+r)t-r , Where, V = the value of an individual ryears old. I(t) = the individuals annual earnings upto the retirement t = retirement age r = present age of the employee R = discount rate

Limitations- Lev & Schwartz

1] It is essentially an input measure .It ignores the output i.e. productivity of employees. 2] Service state of each individual employee is not considered. 3] The training expenses incurred by the company on its employees are not considered. 4] The attrition rate in organization is also ignored. 5] Factors responsible for higher earning potentiality of each individual employees like seniority, bargaining capacity, skill, experience etc. which may cause differential salary structure are also ignore.

Flamholtz Model (Reward Valuation method) (1971).:

This is an improvement on present value of future earnings model since it takes into consideration the possibility or probability of an employees movement from one role to another in his career and also of his leaving the firm earlier, that his death or retirement. The model suggests a five steps approach for assessing the value of an individual to the organisation : 1. Forecasting the period will remain in the organisation, i.e., his expected service life; 2. Identifying the services states, i.e., the roles that the might occupy including, of course, the time at which he will leave organisation; 3. Estimating the value derived by the organisation when a person occupies a particular position for a specified time period; 4. Estimation of the probability of occupying each possible mutually exclusive state at specified future times; and 5. Discounting the value at a predetermined rate to get the present value of human resources.

MORSE MODEL (1973):

Under it the value of human resources is equivalent to the present value of the net benefits derived by the enterprise from the service of its employees. The following steps are involved under this approach: 1. The gross value of the services to be rendered in future by the employees in their individual and collective capacity. 2. The value of direct and indirect future payments to the employees is determined. 3. The excess of the value of future human resources (as per (1) above) over the value of future payments (as per (2) above) is ascertained. This represents the net benefit to the enterprise because of human resources.

Non- monetary value -based approaches::

Likert Model ii) Ogan Model LIKERTS MODEL (1960) Rensis Likert in the 1960s was the first to research in HR and emphasized the importance of strong pressures on the HR's qualitative variables and on its benefits in the longrun. According to Likert's model, human variable scan be divided into three categories: (i) causal variables; (ii) intervening variables; and (iii) endresult variables. The interaction between the causal and intervening variables affect the end-result variables by way of job satisfaction,costs, productivity and earnings

OGANS MODEL
Pekin Ogan (1976) has given Net benefit model. This, as a matter of fact, is an extension of net benefit approach as suggested by Morse. According to this approach, the certainty with which the net benefits in future will accrue should also be taken into account, while determining the value of human resources. The approach requires determination of the following: Net benefit from each employee. Certainty factor at which the benefits will be available. The net benefits from all employees multiplied by their certainty factor will give certainty-equivalent net benefits. This will be the value of human resources of the organization.

Indian companies & HRA

First BHEL (Bharat Heavy Electrical Ltd), a leading public enterprise, during the financial year 197273. Later adopted- leading public and private sector Organization Some of them - Hindustan Machine Tools Ltd.(HMTL). Oil and Natural Gas Corporation Ltd.(ONGC), NTPC, Cochin Refineries Ltd. (CRL), Madras Refineries Ltd.,(MRL), Associated Cement Company Ltd.(ACC) and Infosys Technologies Ltd.(ITL).

Name of the introduce organization BHEL SAIL

Year rate (in%) 1973 74 1983 84 1982 83 1981 82

1984 85 1999 2006-07

HRA Model

Discount

MMTC ONGC model NTPC INFOSYS

Lev & Schwartz model 12 Lev & Schwartz model with 14 Some refinements as suggested by Eric.G. Flamholtz& Jaggi and Lev Lev & Schwartz model 12 Lev & Schwartz 12.25 Lev & Schwartz model 12 Lev & Schwartz model 12.96 Lev & Schwartz model 14.97

PRODUCTIVITY & PERFORMANCE INDICATORS

Examples- India
Secondary Terminology used: 1) PBT-Profit Before Tax 2) HR- Human Resource 3) TA-Total Assets 4) Turn-Turnover ( or Sales) 5) FA-Fixed Assets 6) VA- Value Added

Limitations :
Not easy to value human asset Results in dehumanizing human resource No evidence Hr is full of measurement problem Employees and unions may not like the ideas Unrealistic Lack of empirical evidence