Hr Planning.1

8/2/2019 Hr Planning.1

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HumanResou r ceP l ann ing


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Meaning HR Planningeaning HR Planning HR planning consists of a series of activities, viz.,R planning consists of a series of activities, viz., Forecasting future work for ce requirementorecasting future work force requirement ( projections based on future plans of company under developing( projections based on future plans of company under developing

economic trends)economic trends)

Making inventory of existing manpoweraking inventory of existing manpower and assessing their extent ofand assessing their extent ofutilizationutilization

Anticipating work force problemsnticipating work force problems :( By projecting present resources:( By projecting present resourcesinto future and comparing them with the forecast of requirements tointo future and comparing them with the forecast of requirements todetermine their adequacy both quantitatively and qualitativelydetermine their adequacy both quantitatively and qualitatively

Planning the necessary programslanning the necessary programs of recruitment, selection,of recruitment, selection,deployment, utilization, transfer, promotions, development, motivation anddeployment, utilization, transfer, promotions, development, motivation andcompensation to ensure future requirementscompensation to ensure future requirements

HRM & TQM by Reshma Arora- Samuel / Everest Publishing Delhi/ First editionHRM & TQM by Reshma Arora- Samuel / Everest Publishing Delhi/ First edition

HRM by Mirza Saiyadain / Tata macGrawhill / Third editionHRM by Mirza Saiyadain / Tata macGrawhill / Third edition


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We can define HR Planninge can define HR Planningass A process by which an organization ensures that it has theA process by which an organization ensures that it has the rightrig

htnumbernumber &&kind of peoplekind of p

eople at theat the right placerig

ht place and at theand at the right timerig

ht time,,capable ofcapable ofeffectively and efficientlyeffectively

and efficiently completing those tasks thatcompleting those tasks thathelp the organization to achieve its overall objectives.help the organization to achieve its overall objectives.

Right number of people with right skills at right place at right timeRight number of people with right skills at right place at right timeto implement organizational strategies in order to achieveto implement organizational strategies in order to achieveorganizational objectivesorganizational objectives

The systematic and continuing process of analysing anThe systematic and continuing process of analysing an

organization's human resource needs under changing conditionsorganization's human resource needs under changing conditionsand developing personnel policies appropriate to the long termand developing personnel policies appropriate to the long termeffectiveness of the organisation.effectiveness of the organisation.


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HR PLANNING OBJECTIVEHR PLANNING OBJECTIVE

To recruit and retain human resources in reqd qnty and qualityTo recruit and retain human resources in reqd qnty and quality

To reduce employee turn over and make arrangement to minimizeTo reduce employee turn over and make arrangement to minimize

turn over and fill the consequent vacanciesturn over and fill the consequent vacancies

To meet the HR needs for expansion, diversification etcTo meet the HR needs for expansion, diversification etc

To improve the knowledge, skills, ability, discipline etcTo improve the knowledge, skills, ability, discipline etc To assess the surplus or shortage of human resources and takeTo assess the surplus or shortage of human resources and take

appropriate steps to manage the sameappropriate steps to manage the same

To maintain congenial industrial relations by maintaining optimumTo maintain congenial industrial relations by maintaining optimum

no of employeesno of employees

To make the best use of human resourcesTo make the best use of human resources

To estimate the employee costTo estimate the employee cost


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HR Planning

Job Analysis &Designing

HR Planning &

Forecasting

Employee

Recruitment

Employee

Selection

Job Description

Job Analysis

Job Specification

The tasks and responsibilities of a

job

A study of the task required to do aparticular job well

A list of skill, knowledge and abilities

A person must have to fill the job


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HR Planning Process:

HR Objectives & PolicesCorporate Strategy &Policy

HR Surplus

HR Supply ForecastR Demand Forecast

Differences

HR ShortageLayoffTerminateV. RetiredReassign

HirePay Over timeSub ContractSystem Automation

No Differences:Requirement = Supply

Compare


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Collect Information

Forecast demand for HR

Forecast supply of HR

Plan and conduct program

Feedback on Planning Process

HR Planning Model


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A Model For HR Planning

1. Collect InformationFrom External Environment

a. Economy-general and specific industry.b. Technologyc. Completion

d. Benchmarking and best practice information.e. Labor marketsf. Demographic and social trendsg. Government regulations.

From Inside the Organizationa. Strategy.b. Business plansc. Current Human resources.d. Rates of Turnover and Mobility.


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2.Forecast Demand for Human Resourcesa. Short term and long term

b. Aggregate and individual position.

3. Forecast Supply of Human Resourcesa. Internal Supply.

b. External Supply.

4. Plan and Conduct Needed Programsa. Increase or reduce work force size

b. Change skill mix

c. Develop managerial succession plans

d. Develop career plans5. Feedback on Planning Processa. Were forecasts accurate?

b. Did programs meet needs?


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Forecasting The Demand For Labor

Once HR planners have collected information from bothinternal and external sources, they forecast the demand forlabor.

These forecasts based on the information of past andpresent, and assumptions about future.

Demand Forecasting methods can be divided into twocategories:

A. Judgmental Method

B. Mathematical Method.


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Forecasting The Demand For Labor (Cont..)

A. Judgmental Method: Estimates Rule of Thumb Delphi Technique

Nominal Group Technique Brainstorming

Estimates

Bottom-up Method

Each unit, branch or department estimates its own future needfor employees with the guidance and information of managers.The sum of the estimated unit needs is the demand forecast forthe whole organization. HR planners review the unit forecastsbefore summing so as to control managers natural tendencies to

exaggerate the needed size and importance of their units.


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Estimates (Cont)

Top-down Forecasting

Another judgmental method involves top-down forecasting by

experienced top managers and executives. These expertsmeet to discuss how trends, business plans, the economy,and other factors will affect the need for human resourcesat various levels of the organization. Besides predicting themost likely future demand, these experts also may makeseparate forecasts based on best and worst case scenarios.


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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 theirjudgments 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 accepts consensus judgment as groups choice.

Leader looks

for consensus


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Nominal Group Technique


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 listsprivate at this point. Creativity is encouraged during this phase.

Leader asks each participant to present ideas and writes them on ablackboard or flipchart, continuing until all ideas have been recorded.

Participants discuss each others ideas, clarifying, expanding, andevaluating them as a group.

Participants rank ideas privately in their own personal order andpreference.

The idea that ranks highest among the participants is adopted as the

groups judgment.


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B. Mathematical Method.Simple Mathematical Method

Moving Average Method

Weighted Average Method

Productivity Ratio

Staffing Ratio

Complex Mathematical Methods Multiple Regression

Linear Method


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Forecast Supply of Human Resources

Internal SupplyConsists of all the individuals currently employed by an

organization.

Replacement charts

Promotability; these employees can help to fill futuredemands by remaining employed in their current positions orby being promoted or transferred to fill vacancies elsewherein the organization.

Succession planning

The internal supply is constantly changing as new people enterand other resign, retire, or are discharged. The skill mix isalso thereby changed.

Skills Inventory HRIS


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Forecast Supply of Human Resources

External Supply Labor Markets

Demographic Trends in the Labor Supply

Work Force Diversity

The Contingent Workers

Industry and occupational trends


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Choosing Forecasting Methods

The following factors should be considered inchoosing techniques for HR forecasting:

Stability and Certainty

Availability of Data Number of Employees Resource Available Time Horizon Credibility to Management


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Stability and CertaintyMethods that rely heavily on past should not be used

if the organization is changing rapidly and inunpredictable ways.

Informed human judgment may be superior in thissituation.

Different forecasting with varied assumptions maybe

useful.

Availabil ity of DataAccuracy and completeness to be checked.


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Number of Employees Some statistical techniques are reliable for large number of

employees. Judgmental Method may be applicable for smaller numbers.

Resource Available How much time, computing facilities, statistical experts are

available.

Time Horizon Judgmental method is suitable to analyze the long-term

trend. Statistical method may be accurate for short-term prediction.

Credibil ity to Management Acceptance and belief of the key line managers.


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Planning Human Resource ProgramsPlanning for Shortages

1. Recruit new full-time employees

2. Offer incentive for postponing retirement

3. Rehire retired employees part-time

4. Attempt to reduce turnover

5. Overtime

6. Subcontract work to another firm

7. Hire temporary employees8. Reengineering to reduce needs

9. Outsource an entire function

10. Use technology to improve productivity


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Planning Human Resource ProgramsPlanning for Surpluses

1. Do not replace employees who leave

2. Offer incentive for early retirement

3. Transfer or reassign employees

4. Use slack time for employee training or equipmentmaintenance

5. Reduce work hours

6. Lay Off employees

7. Freeze hiring

Managerial Succession Planning


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Staffing Alternatives in Employee Shortages


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Hr Planning.1

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