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Students of PGDM / PGDITM / PGDM {RM} Programme JIMS{ROHINI }

NEW Delhi

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HR-01: Human Resource Management

Session Unit 3

Topic

Human Resource Planning2Presenter

S.C KapoorExecutive Director THIRD MILLENNIUM BUSINESS RESOURCE ASSOCIATESPRIVATE LIMITED

3Human Resource PlanningHuman Resource Planning systematically forecasts an organisations future demand for, and supply of, employees. Human Resource Planning Contd.Geislers Definition Human Resource Planning is the process of forecasting, developing and controlling, by which a firm ensures that it has the right number and the right kind of people at the right place at the right time doing work for which they are economically most useful. ObjectivesTo ensure optimum use of the human resources currently employed. To provide for the future manpower needs in terms of skills, numbers and ages. Benefits (Why Manpower Planning?)Examination of utilisation of human resources.Reviewing and adapting the way the organisation is at present.Reviewing and modifing human resource policies and practices in terms of cost-effectiveness and acceptability.Benefits (Why Manpower Planning?) Contd.Human resource is procured, developed and utilised effectively and efficiently. The organisation is more likely to have the human resource it needs to achieve its future objectives and reach this position economically.Determinants of Human Resource ForecastingBusiness PlansTechnological ChangesExternal FactorsNatural / Operational DrainageJob AnalysisJob StandardJob EvaluationCause of Demand for Human Resources in the FutureExternalOrganisationalWork ForceEconomicsStrategic PlansRetirementSocial-Political-LegalBudgetsResignationsTechnologySales and Production ForecastsTerminationsCompetitorsNew VenturesOrganisation and Job DesignsDeathsLeaves of AbsenceHuman Resources Planning Table 200FunctionCategoryJanuaryFebruary to December200..RequiredExistingGapRequiredExistingGapHuman ResourceTop Mgmt.Senior Mgmt.Middle Mgmt.Junior Mgmt.Sub-OrdinatesWorkers125164023113173620012- 143Finance MarketingWork Load AnalysisWork Load Analysis determines how many employees of various types are required to achieve total targets.

It is essential to determine the work load in some tangible units so that they may be translated into man hours required per unit of activity.Work Load Analysis Contd.The HR Planner needs to find out sales forecasts, work schedules, etc. and thus determine the manpower required per unit of product.

The sales forecasts are translated into work performance for the various departments of the enterprise. In a manufacturing enterprise, one has to first find out the master schedule and then departmental schedule. The departmental workloads are then converted into man hours in terms of different skills required.Work Load Analysis Contd.Similarly, plans are made concerning the amount of work that each of the other parts (marketing, materials, accounts etc.) of the organisation is expected to accomplish during the period under consideration.

Past experience can be utilized for translating work loads into man hours required.

Work Load Analysis Contd.To take an illustration, let us presume that the annual production target of a company is 1,80,000 units. The standard man hours required to complete a unit of the product are two hours. Past experience reveals that a worker on an average can contribute about 2,000 man hours per year. Work Load Analysis Contd.The work-load may be calculated as under:

a.Annual Production Target=1,80,000 unitsb.Standard Man Hours required per unit=2 hoursc.Planned Man Hours for the year (a x b)=3,60,000 hoursd.Annual Contribution of an Employee=2,000 hourse.Number of Employees required (c/d)=180Work Load Analysis Contd.Thus, 180 employees are needed throughout the year to meet the production target of 1,80,000 units. However, this figure cannot be relied upon fully as the actual production is influenced by many other factors such as availability of inputs and power, breakdown of machinery, strike, lockout, etc.

Work Load Analysis Contd.Workload Analysis is suitable for short term projection of man power requirements.

Long-term projections are made with the help of work force analysis.Work Force AnalysisWork Force Analysis is needed because it is almost certain that all employees will not be available on all working days. This is primarily because of:

Absenteeism Employee Turnover

Both these factors operate to reduce the number of employees available.Work Force AnalysisIt is therefore, necessary to keep a sufficient margin for absentees, employee turnover and idle time on the basis of past experience.

If it is essential to keep a margin of 20% of the manpower required as per work load analysis, the company must ensure that it has at least 210 employees on its payroll to meet the annual production target.My grateful thankstoMr. Sidharta Mukherjee Mr. S.C. KapoorMr. K.K. SrivastavaMs. Charu MalhotraMr. Mohammad Arifandmany others from whom I have learnt immenselyTHANK YOU !