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Meaning HR Planning
HR planning consists of a series of activities, viz., Forecasting future work force requirement ( projections based on future plans of company under developing economic trends)
Making inventory of existing manpower and assessing their extent of utilization Anticipating work force problems :( By projecting present resources into future and comparing them with the forecast of requirements to determine their adequacy both quantitatively and qualitatively Planning the necessary programs of recruitment, selection, deployment, utilization, transfer, promotions, development, motivation and compensation to ensure future requirements
HRM & TQM by Reshma Arora- Samuel / Everest Publishing Delhi/ First edition HRM by Mirza Saiyadain / Tata macGrawhill / Third edition
A process by which an organization ensures that it has the right number & kind of people at the right place and at the right time, capable of effectively and efficiently completing those tasks that help the organization to achieve its overall objectives. Right number of people with right skills at right place at right time to implement organizational strategies in order to achieve organizational objectives The systematic and continuing process of analysing an organization's human resource needs under changing conditions and developing personnel policies appropriate to the long term effectiveness of the organisation.
HR PLANNING OBJECTIVE
To recruit and retain human resources in reqd qnty and quality To reduce employee turn over and make arrangement to minimize turn over and fill the consequent vacancies To meet the HR needs for expansion, diversification etc To improve the knowledge, skills, ability, discipline etc To assess the surplus or shortage of human resources and take appropriate steps to manage the same To maintain congenial industrial relations by maintaining optimum no of employees To make the best use of human resources To estimate the employee cost
HR Planning
Job Analysis & Designing Employee Recruitment Employee Selection
Job Analysis
A study of the task required to do a particular job well The tasks and responsibilities of a job A list of skill, knowledge and abilities A person must have to fill the job
HR Planning Process:
Corporate Strategy & Policy HR Objectives & Polices
HR Demand Forecast Compare HR Supply Forecast
Differences
HR Surplus
Layoff Terminate V. Retired Reassign
HR Shortage
Hire Pay Over time Sub Contract
System Automation
HR Planning Model
Collect Information
Forecast supply of HR
1.
Collect Information From External Environment a. Economy-general and specific industry. b. Technology c. Completion d. Benchmarking and best practice information. e. Labor markets f. Demographic and social trends g. Government regulations. From Inside the Organization a. Strategy. b. Business plans c. Current Human resources. d. Rates of Turnover and Mobility.
Once HR planners have collected information from both internal and external sources, they forecast the demand for labor. These forecasts based on the information of past and present, and assumptions about future. Demand Forecasting methods can be divided into two categories:
A. B.
Estimates
Bottom-up Method Each unit, branch or department estimates its own future need for employees with the guidance and information of managers. The sum of the estimated unit needs is the demand forecast for the whole organization. HR planners review the unit forecasts before summing so as to control managers natural tendencies to exaggerate the needed size and importance of their units.
Estimates (Cont)
Top-down Forecasting Another judgmental method involves top-down forecasting by experienced top managers and executives. These experts meet to discuss how trends, business plans, the economy, and other factors will affect the need for human resources at various levels of the organization. Besides predicting the most likely future demand, these experts also may make separate forecasts based on best and worst case scenarios.
Delphi Technique
Leader identifies judgment issues and develops questionnaire. Prospective participants are identified and asked to cooperate. Leaders send questionnaire to willing participants, who record their judgments and recommendations and return the questionnaire. Leaders compiles summaries and reproduces participants responses. Leader sends the compiled list of judgment to all participants.
Participants comment on each others ideas and propose a final judgment
Leader looks for consensus Leader accepts consensus judgment as groups choice.
A small group of 4-5 people gathers around a table. Leader identifies judgment issue and gives participants procedural instructions. Participants write down all ideas that occur to them, keeping their lists private at this point. Creativity is encouraged during this phase. Leader asks each participant to present ideas and writes them on a blackboard or flipchart, continuing until all ideas have been recorded. Participants discuss each others ideas, clarifying, expanding, and evaluating them as a group. Participants rank ideas privately in their own personal order and preference. The idea that ranks highest among the participants is adopted as the groups judgment.
Moving Average Method Weighted Average Method Productivity Ratio Staffing Ratio Complex Mathematical Methods Multiple Regression Linear Method
Replacement charts Promotability; these employees can help to fill future demands by remaining employed in their current positions or by being promoted or transferred to fill vacancies elsewhere in the organization. Succession planning
The internal supply is constantly changing as new people enter and other resign, retire, or are discharged. The skill mix is also thereby changed. Skills Inventory HRIS
Labor Markets Demographic Trends in the Labor Supply Work Force Diversity The Contingent Workers Industry and occupational trends
Stability and Certainty Availability of Data Number of Employees Resource Available Time Horizon Credibility to Management
Stability and Certainty Methods that rely heavily on past should not be used if the organization is changing rapidly and in unpredictable ways. Informed human judgment may be superior in this situation. Different forecasting with varied assumptions maybe useful. Availability of Data Accuracy and completeness to be checked.
Some statistical techniques are reliable for large number of employees. Judgmental Method may be applicable for smaller numbers. How much time, computing facilities, statistical experts are available. Judgmental method is suitable to analyze the long-term trend. Statistical method may be accurate for short-term prediction. Acceptance and belief of the key line managers.
Resource Available
Time Horizon
Credibility to Management
Planning Human Resource Programs Planning for Shortages Recruit new full-time employees Offer incentive for postponing retirement Rehire retired employees part-time Attempt to reduce turnover Overtime Subcontract work to another firm Hire temporary employees Reengineering to reduce needs Outsource an entire function Use technology to improve productivity
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Planning Human Resource Programs Planning for Surpluses Do not replace employees who leave Offer incentive for early retirement Transfer or reassign employees Use slack time for employee training or equipment maintenance Reduce work hours Lay Off employees Freeze hiring Managerial Succession Planning
1. 2. 3. 4. 5. 6. 7.