8/10/2019 chap HRP

1/21

8/10/2019 chap HRP

2/21

REASONS FOR DEMAND

FORCASTING:1. Quantify the jobs necessary for producinggoods.

2. Determine staff-mix desirable in the future.3. Assess appropriate staffing levels in different

parts organisation to avoid unnecessary costs.

4. Prevent shortage of people when they areneeded most.

5. Monitor compliance with legal requirements.

8/10/2019 chap HRP

3/21

Potential benefits

Upper management better aware.Personnel cost is controlled.More time to locate talent.Affirmative Action Plan implemented

Time to develop employees

8/10/2019 chap HRP

4/21

Activities

Planning & Forecasting Predict Demand Tap the sources of Supply Recruitment/Selection

8/10/2019 chap HRP

5/21

8/10/2019 chap HRP

6/21

Methods Of Forecasting Trend Analysis Ratio Analysis Scatter Plot Computerized Forecast Qualification Inventories Personnel Replacement Charts

Position Replacement Cards

8/10/2019 chap HRP

7/21

PROGRAMME PLANNING OPTIONS

Do not replace employees who leave

Offer incentives for early retirementTransfer or re-assign excess employeesUse slack time for employees training orequipment maintenanceReduce work hoursLay-off employees

If a surplus of employeesis expected .

Hire new full-time employeesOffer incentives for postponing retirementRe-hire retired employees on part-time basisAttempt to reduce turnoverBring in overtime for present staffSubcontract work to another companyHire temporary employeesRe-engineer to reduce needs.

If a shortage ofemployees is expected .

8/10/2019 chap HRP

8/21

OPTIONS FOR REDUCING AN

EXPECTED LABOR SURPLUS Option Speed Human Suffering

Downsizing Fast High

Pay reductions Fast High

Demotions Fast High

Transfers Fast Moderate

Work sharing Fast ModerateRetirement Slow Low

Natural attrition Slow Low

Retraining Slow Low

8/10/2019 chap HRP

9/21

OPTIONS FOR AVOIDING AN EXPECTED

LABOR SHORTAGE

Option Speed Human Suffering

Overtime Fast High

Temporary employees Fast High

Outsourcing Fast High

Retrained Transfers Slow High

Turnover reductions Slow Moderate

New external hires Slow Low

Technologicalinnovation

Slow Low

8/10/2019 chap HRP

10/21

11/5/2014 11:24 PM IBP PRESENTATION 10

A HYPOTHETICAL TRANSITIONAL MATRIX

FOR AN AUTO PARTS MANUFACTURER

199319961) 2) 3) 4) 5) 6) 7) 8)

Sales manager .95 .05

Salesrepresentative

.05 .60 .35

Sales apprentice .20 .50 .30

Assistant plantmanager

.90 .05 .05

Productionmanager

.10 .75 .15

Productionassembler

.10 .80 .10

Clerical .70 .30

Not in organization .00 .20 .50 .00 .10 .20 .30

8/10/2019 chap HRP

11/21

DOWNSIZING

Planned elimination of large number of personnel with goal of enhancing the

organizationals competitiveness

8/10/2019 chap HRP

12/21

DOWNSIZING

Reducing costsReplacing Labor by

TechMergers &Acquisitions

Moving to moreeconomical locations

Loss of talentSocial network

effectedDrop of motivationHurt image building

Only as a last resortImprove forecasting

8/10/2019 chap HRP

13/21

Other options

Early Retirement ProgramsEmploying Temporary WorkersOutsourcingOvertime and Expanded Hours

8/10/2019 chap HRP

14/21

RECRUITMENT CHANNELS

INTERNALJob Posting Programs

Buy Back

EXTERNAL

Walk in interviews

Employee referrals

Advertisement/ E rects

Employment agencies

Private placement

agencies

Educational Institutes

Temporary Help Agencies

Open House

8/10/2019 chap HRP

15/21

YIELD RATIO

Expresses the relationships of applicants inputs tooutput of various decisions points. This is a simplemethod to calculate the number of applicants an

employer must generate to hire the required number ofnew applicants.New hire 2 ; 1

Interview 3 : 2

Short list 4 : 3

Applicants 6 : 4

BUSINESS SOLUTIONS

8/10/2019 chap HRP

16/21

LocalUniversity

RenownedUniversity

EmployeeReferrals

NewspaperAd

ExecutiveSearch

FirmsResumes generated 200 400 50 500 20

Interview offersaccepted 175 100 45 400 20

Yield ratio 87% 25% 90% 80% 100%Judged acceptable 100 95 40 50 19

Yield radiation 57% 95% 89% 12% 95%Accept employmentoffers 90 10 35 25 15

Yield ratio 90% 11% 88% 50% 79%Cumulative 90/200 10/400 35/50 25/500 15/20

Yield ratio 45% 3% 70% 5% 75%Cost $ 30,000 $ 50,000 $ 15,000 $ 20,000 $ 90,000

Cost per hire $333 $ 5,000 $ 425 $ 800 $ 6,000

Hypothetical Yield Ratio for Five Different Recruitment Sources

8/10/2019 chap HRP

17/21

Recruiter

CHARACTERISTICS

Choose expertsWarm and Enthusiastic

InformativeEye for the manProvide realistic JobPreview

DO NOTS

Delay feedback tocandidates

Avoid offensive Behavior Negative image of company

8/10/2019 chap HRP

18/21

DOCUMENTATION

Application BlankJob PostingsPersonnel InventoriesReplacements

8/10/2019 chap HRP

19/21

HRP Audit

Leaving cost or Horizontal mobilityDirect costs: Ads, Interviews, TestingCost of time spent by HR peopleOrientation and Trg costs

8/10/2019 chap HRP

20/21

Average core combinedwith Category A overtimeand Category B own-pooltemporaries

Small core

workforce (inc.Category A homeworkers and part-timers) andCategory C workers

Large core combinedwith Category A

part-time

Average corecombined withCategory A part-

timers, shiftworkers, homeworkers andCategory C agencyand/or subcontracts

HUMAN RESOURCING:Planning and performanceFluctuations in demand

High

High

Low

Low

Labourcosts

Risk assessment model of flexible working patterns

8/10/2019 chap HRP

21/21

Peripheral group I Secondarylabour markets Flexibility

through quantitative adjustment

Short termcontracts Public

subsidytrainees

Delayedrecruitment

Job

sharing

Part timers

Peripheral group II

Core group

Primary labour

marketsFlexibility through

utilization

Out-sourcing

Self-employment

The flexible firm