Human Resource Planning

It is a process of getting the right number of qualified

people into the right job at the right time
This is very much important for strategic planning
A process which is very much helpful to arrive at the
competencies
Help to identify the core competencies
A tool used to increase the productivity
An assurance to stand unique with everything
Factors that determine HR plans
Need for Human
Resources:
Quantity and
Skill levels
Available financial
Financial Resources
HR Plans and Policies for
Recruitment
Selection
HR development
Compensation
Performance Management
Staffing Adjustments

Strategy of the
organisation
Culture of the
organisation
Competitive/
Financial
Environment
Current
Organisational
Structure
Human Resource Planning
It is a process of analysing and identifying
the need for and availability of he human
resources so that the organisation can meet its
objectives. It is planned on the basis of

Production schedules
Market fluctuations
Demand forecasts

Objectives
Forecast personnel requirements
future manpower needs in the organisation
Cope with changes
in market conditions, technology, products
and government regulations in an effective way
Use existing manpower productively
inventory of existing skill level, training,
educational qualification, work experience etc.,
Promote employees in a systematic manner
useful information on the basis of which
management decides promotion
Importance
Reservoir of talent

Prepare people for future

Expand or contract

Cut costs

Succession planning
Process of Human Resource
Planning
1. Forecasting the Demand for Human Resources
a) External Challenges
b) Organisational Decisions
c) Workforce Factors
d) Forecasting Techniques
e) Work force Analysis
f) Work Load Analysis
g) Job Analysis
Process of Human Resource
Planning
2. Preparing Manpower Inventory
a) Internal labour supply
a profile in terms of age, sex, education,
training, experience, job level, past
performance, and future potential should be
kept ready for use whenever required
b) External labour supply
the extent the organisation is able to
anticipate its outside recruitment needs and
looks into the possible sources of supply
keeping the market trends in mind.

Process of Human Resource
Planning
3. Determining the manpower Gaps
- Number required at the beginning of the year
- Changes of requirements forecasted during the
year
- Total requirements at the end of the year
- Additions (transfers, promotions)
- Deficit and surplus
- Losses of those recruited during the year


Process of Human Resource
Planning
4. Formulating HR plans
- Recruitment plan
- Redeployment (new place of work)
- Redundancy plan (unemployed)
- Training plan
- Productivity plan
- Retention plan
- Control points

HR Planning Process
Organisational
Objectives and
Strategies

Scan External
Environment for
Changes affecting
Labor supply

Analyse Internal Inventory
of HR Capabilities
Forecasting
Survey of People
Available
HR Strategies and
Plans
Organisational
Need for People
Scanning the External
Environment
Process of studying the environment of the
organisation to pinpoint opportunities and threats.
Here the main thrust is given to the
environment like government issues, workforce
changes, economic conditions, geographic and
competition issues.
Government Influences
Tax legislation at local, state and federal levels
affects HR planning
Pension provisions and Social Security legislation
may change retirement patterns
Elimination or expansion of tax benefits for job
training expenses might alter some job training
activities associated with workforce expansions
Tax credits for employee day care and fninancial aid
for education may affect employer practices in
recruiting and retaining workers.
Economic Conditions
The business cycle of recession and economic
booms affects HR planning
Factors such as interest rate, inflation, and
economic growth affect the availability of workers
Decisions on wages, overtime, and hiring or
laying off workers may be affected by economic
conditions
Geographic and Competitive
Concerns

Other employees in the area
Employee Resistance to the geographic location
Direct competition in the industry and the impact
of inter-geographic location
The impact of International Competition




Workforce composition
Changes in the composition of workforce like
- regular
- voluntary
- full time
- job shares
- telecommuters
- seasonal/contingent
- retirees
- involuntary
Internal assessment of the
organisational workforce
Auditing jobs and skills
- what jobs exist now?
- how many individuals are performing each job?
- what are reporting relationships of jobs
- how essential is each job
- what jobs will be needed to implement future
organisation strategies?
- what are the characteristics of anticipated job?
Internal assessment of the
organisational workforce
Organisational Capabilities Inventory
- Individual Employee Demographics (age, length of
service in the organisation, time in present job)
- Individual Career Progressions (jobs held, time in
each job, promotions or other job changes, pay
rates)
- Individual Performance Data (work
accomplishments, growth in skills
Forecasting
Mathematical models like
- statistical regression analysis
- simulation models
- productivity ratios
- staffing ratios
Judgmental techniques like
- estimates
- rules of thumb
- delphi techniques
- nominal groups
Job Analysis
The procedure for determining the duties and
skill requirements of a job and the kind of person
who should be hired.
It is a formal and detailed examination of jobs.
It is the systematic investigation of the tasks,
duties and responsibilities necessary to do a job
It is also an important personnel activity
because it identifies what people do in their jobs and
what they require in order to do a job satifactorily.
Aims of Job Analysis
Work activities how, why, and when
Human behaviours sensing, communicating,
deciding and writing
Machines, tools, equipments, and work aids used
Performance standards basis for evaluation
Job context physical work settings, work schedule,
etc.,
Human requirements job related knowledge or
skills and required personal attributes
Uses of job analysis
Human resource planning
Recruitment
Selection
Placement and orientation
Training
Counseling
Employee safety
Performance Appraisal
Job design and redesign
Job evaluation

Steps in Job Analysis
Identify the use to which the information will be put
Review relevant background information such as
organisation charts and prior job descriptions
Select representative position to be analysed
Actually analyse the job
Review the information with job incumbents
Develop a job description and job specification
Methods of collecting job analysis
information

Job Performance
Personal Observation
Critical incidents
Interview
Panel of Experts
Diary Methods
Questionnaire method
Standard questionnaires used
The Position Analysis Questionnaire (PAQ)
developed at Purdue University to
quantitatively sample work oriented job
elements. It contains 194 items divided into six
major job dimensions. They are
- information input
- mental processes
- physical activities
- relationship with other people
- job context
- other job characteristics
Management position description
questionnaire
Standardised instrument designed specifically for
use in analysing managerial jobs. The 274 item
questionnaire contains 15 dimensions. They are
- product, marketing and financial planning
- coordination of other organisational units
and personnel
- internal business control
- products and services responsibility
- public and customer relations
- advanced consulting

Management position description
questionnaire (MPDQ)

- autonomy of actions
- approval of financial commitments
- staff service
- supervision
- complexity and stress
- advanced financial responsibility
- broad personnel responsibility

Functional Job Analysis (FJA)
FJA is a worker-oriented job analysis
approach that attempts to describe the whole
person on the job. There are five steps to be
followed
- identification of organisations goals
- identification and description of tasks
- analysis of tasks
- developing performance standards based
on analysis
- development of training content needed by
the job holder.
Job description
is a written statement of what the jobholder
actually does, how he or she does it, and under
what conditions the job is performed.
This information in turn used to write a job
specification that lists the knowledge, abilities,
and skills needed to perform the job satisfactorily
There is no standard format you must use in
writing job description.
Job description contents
Job identification
Job summary
Responsibilities and duties
Authority of incumbent
Standards of performance
Working conditions
Job specifications

Contents of JD
Job identification
This involves several type of information
such as
job title specifies the title of the job such as
supervisor, marketing manager, inventory clerk
etc.,
job status exempt of nonexempt status of the
job (administrative and professional are exmpt
from overtime and minimum wage provisions
location of the job plant/division and
department/section along with immediate
supervisors signature, pay scale, the grade or
level of the job will also be included
Contents of JD
Job summary
should describe the general nature of the job,
listing only its major functions of activities
for eg., marketing manager plans, directs and
coordinates the marketing of the organisations
products and/or services.
try to avoid the general statements like
performs other assignments as required.
Contents of JD
Relationships (HR Managers)
this contains statements such as

Reports to: vice president of employee relations
Supervises: human resource clerk, test
administrator, labor relations director, and one
secretary
works with: all department managers and
executive management
outside the company: employment agencies,
executive recruiting firms, union representative,
state and federal employment offices, and
various vendors.
Contents of JD
Responsibilities and Duties

here the major duties are listed and
described in a few sentences
this also describe the limits of the jobholders
authority, including his or her decision-making
authority, direct supervision of other personnel,
and budgetary limitations.

Contents of JD
Standards of Performance
the standards the employee is expected to
achieve under each of the job descriptions main
duties and responsibilities. Example is
Duty: Meeting Daily Production schedule
1. Work group produces no less than 426 units
per working day
2. No more than an average of 2% of units
rejected at the next workstation
3. Work is completed with no more than an
average of 5% overtime per week
Contents of JD
Working conditions and physical environment

this involves the noise level, hazardous
conditions or heat.
any kind of this disturbances should be
informed well in advance.
so that the employee may well prepared for
the expected conditions
Job description guidelines
Be clear should portray the work
Indicate scope of authority be sure and indicate
the position
Be specific select the most specific words to
show and use action words such as analyze, gather,
assemble, plan, devise, infer, deliver, maintain,
supervise, and recommend.
Be brief short accurate statements to accomplish
the purpose best
Recheck check whether the description fulfills the
basic requirements
Contents of JD
Identifying essential job functions
1. Does the position exist to perform the
function?
2. Are employees in the position actually required
to perform the function?
3. Is there a limited number of other employees
available to perform that function?
4. What is the degree of expertise or skill
required to perform the function?
5. What is the actual work experience of present
or past employee in the job?
6. What is the amount of time an individual
actually spends performing the functions?
7. What are the consequences of not requiring
the performance of the function?

Practical job analysis approach
1. Decide on a Plan
2. Develop an organisation chart
3. Use a Job Analysis/description
questionnaire
4. Obtain the dictionary of Occupational titles
5. Choose appropriate definitions and put
them on index cards
6. Put appropriate DOT summaries on the top
of your job description form
7. Complete your job description


Job Specification
takes the job description and answers
the question, What kind of person to recruit and
for what qualities that person should be tested.

The job specification may be a separate section
on the job description or a separate document
entirely
Specifications for trained versus
untrained personnel

Writing job specification for trained people is
relatively straightforward
The problems are more complex when youre
filling jobs with untrained people. Here you must
specify qualities such as physical traits,
personality, interests, or sensory skills that imply
some potential for performing the job or for
having the ability to be trained for the job.

Job specifications based on
judgment
This approach is based on educated guess of people
like supervisors and human resource managers.
The basic procedure here is to ask, what does it
take in terms of education, intelligence, training and
the like to do this job well?
The Dictionary of Occupational Titles will be useful
here. In this the job analysts and vocational
counselors have made judgments regarding each
jobs human requirements.
Dictionary of Occupational Title
In this each of these human requirements or
traits has been rated and assigned a letter as
follows
G Intelligence
V Verbal
N Numerical
S Spatial
P Perception
Q Clerical Perception
K Motor Co-ordination
F Finger Dexterity
M Manual Dexterity
E Eye-hand-foot coordination
C Color discrimination
Research Insights
Recent study obtained from over 18,000
employees in 42 different hourly entry level jobs.
Here they found various behaviours which was
categorized as generic and otherwise important
across the work boards regardless of their jobs.
Industriousness
Thoroughness
Schedule Flexibility
Attendance
Off-task Behaviour (reverse)
Unruliness (reverse)
Theft (reverse)
Drug misuse (reverse)


Job Specification based on
Statistical Analysis
Predictors like human traits, intelligence, or
finger dexterity
Indicator or criterion of job effectiveness.

There is a five step procedure for this
1. Analyse job and decide how to measure
performance
2. Select Personal traits like finger dexterity
which is useful for successful performance
3. Test candidates for these traits
4. Measure these candidates subsequent
performance
5. Statistically analyse the relationship between
the human trait and performance
Job Specification based on
Statistical Analysis
Personality Related job Requirements
This forms the basic personality dimensions
such as
agreeableness
conscientiousness
emotional stability
about the above characteristics a questionnaire is
given and the results were arrived statistically.
Job Enlargement
By the mid 1900s writers reacted to the Adam
Smith and Fredrick Taylors concept of
specialization and efficiency as dehumanizing
one and proposed various solutions like

Job Enlargement
Job Rotation
Job Enrichment
Job Enlargement
It means assigning workers additional same- level
activities thus increasing the number of activities
they perform.

For eg. The worker was assembling chairs, who
previously only bolted the seats to the legs might
take the additional tasks of assembling the legs
and attaching the back as well.
Job Rotation

Systematically moving workers from one job to
another.
On an assembly line, a worker might spend an
hour fitting the doors, the next hour installing the
headlamps and so on.
Job Enrichment
This means redesigning jobs in a way that
increase the opportunities for the workers to
experience feelings of responsibility,
achievement, growth, and recognition by doing
the job well. Five ways to do this are
1. Form natural work groups
2. Combine tasks
3. Establish client relationships
4. Vertical loading
5. Open feedback Channels
De-jobbing
This is ultimately a result of changes taking place in
business today.
Organisations need to grapple with the revolutionary
forces accelerating product and technological
change, globalize competition, deregulation, political
instability, demographic changes and trends towards
a service society and the information age.
The forces like this have dramatically increased the
need for firms to be responsive, flexible, and capable
of competing in the global marketplace.
Coping with de-jobbing
Some radical changes in the structure of the
organisation will avoid this blurring. They are
1. Flatter Organisations (General Electric, ABB)
2. Work Teams (traditional pyramid organisation
was replace with multi-skilled, cross functional
and self-directed teams)
3. The Boundaryless organisation (widespread
use of teams and similar structural mechanisms
like avoiding sales and production hierarchical
levels
4. Reengineering (the fundamental rethinking
and radical redesign of business processes to
achieve dramatic improvements in critical,
contemporary measures of performance such as
quality, cost, service, and speed.