ACQUIRING HUMAN

RESOURCES

HUMAN RESOURCE
PLANNING

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 Human Resource Planning
 “An effort to anticipate future business
and environmental demands upon
and organization and to provide
personnel to fulfill that business and
satisfy that demand”

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 HUMAN RESOURCE PLANNING
 Definition: It is the process by which management
determines how an organisation should move from its
current manpower position to its desired manpower
position. Through it management strives to have the
right number and the right kind of people at the right
places, at the right time, doing things which result in
both the organisation, and the individual receiving,
maximum long-rang benefit”

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Purpose of HR Planning

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 Strategic Planning

The process by which top

management determines
overall organizational
purposes and objectives and
how they are to be
achieved.

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Strategic Importance

 Human resources management (HRM): the

philosophies, policies, and practices that an
organization uses to affect the behaviors of
people who work for the organization

 Strategic use of HRM activities can improve

organizational effectiveness

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 Objectives of HRP
 To ensure optimum use of  To estimate cost of Hr and
existing HR Housing needs of Employees
 To forecast future  To provide a basis for MDP
requirements for HR  To facilitate productivity
Bargaining
 To provide control
 To meet the needs of
measures Expansion and
 To link HRP with Diversification programmes
Organizational Planning  To assess shortage and
 To determine levels of surplus of Hr
Recruitment and Training

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 Need and Importance of HRP
 To carry on its work and  HRP is useful in
to achieve its objectives anticipating Cost of HR
 HRP identifies gaps which facilitates
 There is need to replace budgeting easier
employees  HRP facilitates Career
 HRP facilitates expansion and succession
and growth planning
 HRP helpful in effective  HRP helps in planning
utilization of for physical facilities like
HR and Technology canteen staff quarters
etc

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 Why HRP gained so much
focus in recent times…
 Employment situation  Lead time
 Technological Changes  Hiring costs
 Organizational Changes  Increased Mobility
 Demographic Changes
 Shortage of Skills
 Legislative Controls
 Pressure Groups
 Systems Concepts

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 Human Resource
Planning

Assessing Future
Assessing Current
Human Resource
Human Resources
Needs

Developing a
Program to Meet
Needs

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Human Resource Planning

Strategic
Strategic
Formulation
Implementation

SWOT tells us Deploying

how well our human
workforce is capital is one of
deployed ‘musts’ of
strategic
implementation
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HR PLANNING PROCESS

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 Scanning the External
Environment
 Environmental Scanning
 The process of studying the environment of the
organization to pinpoint opportunities and threats.
 Environment Changes Impacting HR
 Governmental regulations
 Economic conditions
 Geographic and competitive concerns
 Workforce composition

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 Internal Assessment of the
Organizational Workforce

 Auditing Jobs and Skills

 What jobs exist now?
 How many individuals are performing each
job?
 How essential is each job?
 What jobs will be needed to implement
future organizational strategies?

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 Process of HRP

1. Analyzing Organizational Plans

2. Forecasting Demand for HR
3. Forecasting supply of HR
4. Estimating Manpower Gaps
5. Action Planning
6. Monitoring and Control

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 The HRP Process
How many?
Strategic plans &
What
Organizational design
quality?
Where?
Resultant
Labor Demand Forecasti
ng
1. Current
Current supply (internal) supply
2. Surplus / shortage?
situation
(internal & external)

Staffing plans Implementati

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HRP Process

Organizational
Objectives

HR Needs HR Supply
Forecast Forecast
HR Programming

HRP
Implementation
Control &
Evaluation

Surplus - Restricted Shortage - Recruitment

Hiring, Lay Off, VRS, & Selection
Reduced Hours
 Human Resource Planning Process
External Environment
Internal Environment
Strategic Planning

Human Resource Planning

Forecasting Comparing Forecasting

Human Requirements Human Resource
Resource Availability
Requirements and Availability

Demand = Surplus of Shortage of

Supply Workers Workers

No Action Restricted Hiring, Recruitment

Reduced Hours,
Early Retirement, Selection
Layoff, Downsizing

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 Demand for Labor

Strategy / Design

Primary demand for labor

Demand for X number of employees,

of certain types / quality, in
particular parts of organisation

Short term Long term

(static) (fluid)
demand demand
Forecasting

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 Labour Supply

Current supply
Assess internal supply against
demand
Forecasted supply

Based on current supply,

is there a shortage / surplus?

Staffing plans

Shortage:
Surplus:
•Overtime
•Downsizing
•Outsourcing
•Transfers
•Retrained transfers
•Work sharing
•New hires
•Retirement
•Technological innovation
•Natural attrition
•Retraining
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 Forecasting HR Supply and Demand
 Forecasting

The use of information

from the past and present
to identify expected
future conditions.

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Forecasting HR Supply and Demand …

Forecasting Methods
Judgmental
 Estimates—asking managers’ opinions, top-down
or bottom-up
 Rules of thumb—using general guidelines
 Delphi technique—asking a group of experts
 Nominal groups—reaching a group consensus in
open discussion
 Ratio trend analysis
 Regression analysis
 Work study techniques
 Delphi technique
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Forecasting HR Supply and Demand

 Forecasting Periods

 Short-term—less than one year

 Intermediate—up to five years
 Long-range—more than five years

 Forecasting the Supply for Human Resources

 External Supply
 Internal Supply

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 Forecasting HR Supply and
Demand

 Forecasting the Demand for Human Resources

 Organization-wide estimate for total demand
 Unit breakdown for specific skill needs by number and
type of employee
 Develop decision rules (“fill rates”) for positions to
be filled internally and externally.
 Develop additional decision rules for positions
impacted by the chain effects of internal
promotions and transfers.

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 Forecasting HR Supply and
Demand
 Forecasting External HR Supply
 Factors affecting external

 Individuals entering and leaving the workforce

 Individuals graduating from schools and colleges
 Changing workforce composition and patterns
 Economic forecasts
 Technological developments and shifts
 Actions of competing employers
 Government regulations and pressures
 Other factors affecting the workforce

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 Managing Human Resource
Surplus or Shortage

 Workforce Reductions and the WARN Act

 Identifies employer requirements for layoff advance
notice.

 60-day notice to employees and the local

community before a layoff or facility closing
involving more than 50 people.
 Does not cover part-time or seasonal workers.
 Imposes fines for not following notification
procedure.

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 Managing Human Resource Surplus or Shortage

 Workforce Realignment
“Downsizing”, “Rightsizing”, and “Reduction in
Force” (RIF) all mean reducing the number of
employees in an organization.

 Causes
 Economic - weak product demand, loss of market share to competitors
 Structural - technological change, mergers and acquisitions
 Positive consequences
Increase competitiveness
Increased productivity

 Negative consequences
Loss of specialized skills and experience
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Loss of growth and innovation skills
Managing Human Resource Surplus or Shortage

 Downsizing approaches

 Attrition and hiring freezes

 Not replacing departing employees and not hiring new employees.

 Early retirement buyouts

 Offering incentives that encourage senior employees to leave the
organization early.

 Layoffs
 Employees are placed on unpaid leave until called back to work
when business conditions improve.
 Employees are selected for layoff on the basis of their seniority or
performance or a combination of both. 29
 Assessing HR Effectiveness

 Diagnostic Measures of HR Effectiveness

 HR expense per employee

 Compensation as a percent of expenses
 HR department expense as a percent of total expenses
 Cost of hires
 Turnover rates
 Absenteeism rates
 Worker’s compensation per employee

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 HR
Evaluation
Process

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 Assessing HR Effectiveness

 HR Audit

 A formal research effort that evaluates the current state of HR management in an

organization
 Audit areas:
 Legal compliance (e.g., Legal Audits, ISO etc)
 Current job specifications and descriptions
 Valid recruiting and selection process
 Formal wage and salary system • Benefits
 Employee handbook
 Absenteeism and turnover control
 Grievance resolution process
 Orientation program • Training and development
 Performance management system

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 Using HR Research for Assessment

 HR Research
 The analysis of data from HR records to determine the
effectiveness of past and present HR practices.

 Primary Research
 Research method in which data are gathered first-hand for the
specific project being conducted.

 Secondary Research
 Research method using data already gathered by others and
reported in books, articles in professional journals, or other
sources.

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 HR Performance and
Benchmarking
 Benchmarking
 Comparing specific measures of
performance against data on those
measures in other “best practice”
organizations

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 JOB ANALYSIS
&
HUMAN RESOURCE
PLANNING

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 Definitions
 Job - Consists of a group of tasks that must
be performed for an organization to achieve
its goals.

 Position - Collection of tasks and

responsibilities performed by one person;
there is a position for every individual in an
organization.
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 Job Analysis
A Basic Human Resource Management
Tool

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 Human Resource
Tasks Responsibilities Duties Planning
Recruitment
Selection
Training and
Job
Development
Descriptions
Job Performance Appraisal
Analysis Compensation and
Job
Specifications Benefits
Safety and Health
Employee and Labor
Relations
Knowledge Skills Abilities Legal Considerations

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 Definitions
 Job analysis - Systematic process of
determining the skills, duties, and
knowledge required for performing jobs in
an organization.

 Job description – document providing

information regarding tasks, duties, and
responsibilities of job.
 Job specification – minimum qualifications
to perform a particular job.
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 Job Analysis

 Job analysis is a formal and detailed study of jobs

 It refers to a scientific and systematic analysis of a job in
order to obtain all pertinent facts about the job
 It is essentially a process of collecting and analyzing all
pertinent data relating to a job

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 Objectives of Job Analysis
 Job Redesign
 Work Standards
 Recruitment
 Selection
 Training
 Performance appraisal
 Job evaluation
 Safety
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 Benefits of Job
Analysis
1. Organizational Design
2. Human Resource Planning
3. Recruitment and Selection
4. Placement and Orientation
5. Training and Development
6. Performance Appraisal
7. Career Path planning
8. Job Design
9. Job Evaluation
10 Labor Relation
11. Employee Counseling
12. Health and Safety
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 The process of Job Analysis
1. Organisational Analysis
2. Organising Job Analysis Programme
3. Deciding the uses of Job Analysis Information
4. Selecting Representative Jobs for analysis
5. Understand Job Design
6. Collection of Data
7. Developing a Job Description
8. Preparing a Job Specification

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 Differentiate between
Job Description Job Specification

 Job Description is a  Job specification is a

functional description of
what the job entails. And
define the purpose and
scope of a job. It is a
written record it contains
title, location, duties,
responsibilities, working  It includes physical,
conditions, hazards and
relationship with other
jobs.
statement of the minimum
acceptable human qualities
required for the proper
performance of a job.
mental, social,
psychological and
behavioral characteristics
of a person

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 Job Evaluation
 Job evaluation is “the process of analysis and
assessment of jobs to ascertain reliably their
relative worth using the assessment as the
basis for a balanced wage structure.”

 Job evaluation begins with job analysis and

ends up with the classification of jobs
according to their worth. A job cannot be
evaluated unless and until it is analyzed.
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 Job evaluation is aimed at determining a job’s
relative worth. It is a formal and systematic
comparison of jobs to determine the worth of one
job relative to another, and eventually result in a
wage or salary structure or hierarchy.

 The basic principle of job evaluation is that:- Jobs

that require greater qualifications, more
responsibilities, and more complex job duties
should be paid more highly than jobs with lesser
requirements.

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 Objectives of Job evaluation

1. To Determine equitable wage differentials between

different jobs in the organization
2. To eliminate wage inequities
3.To develop a consistent wage policy
4. To provide a framework for periodic review and
revision of wages
5. To provide a basis for wage negotiations
6. To enable management to gauge and control the payroll
costs
7. To minimize wage descriptions on the basis of age, sex,
caste, region, religion , creed etc 47
Preparing for the job evaluation

 Identify the need for job evaluation should

not be difficult
 Getting employees to cooperate in the
evaluation of their jobs.
 Choose a job evaluation committee.

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By Nadeem The Killer
Gr.7B

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