HRM 07-08-HR Chapter2

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Unit 2: Manpower PlanningUnit 2: Manpower PlanningUnit 2: Manpower PlanningUnit 2: Manpower PlanningContentsContents

ObjectivesObjectivesEstimating manpower requirementsEstimating manpower requirements

Recruitments and selectionRecruitments and selection

Retention of manpowerRetention of manpower

Succession PlanningSuccession Planning



Books to be referred Need and Importance- CB Gupta

Process- CB Mamoria

Sources- CB Mamoria

Retention - notes

Succession -Notes



Meaning

Manpower planning and human resource

planning are synonymous. HRP is the

process of forecasting a firm¶s future

demands for, and supply of the right type of people in the right number.

It is continuous process. It is not rigid and is

amenable to modifications, review and

adjustments in accordance with the needs of

the organization or the changing

circumstances.



Definitions

Eric Vetter:

³MP is the process by which managementdetermines how an organization should move

from its current manpower position to itsdesired manpower position. Throughplanning, a management strives to have theright number and the right kind of people at

the right places, at the right time, to do thingswhich result in both the organization and theindividual receiving the maximum long- rangebenefit´



Stainer

MP is the ³ Strategy for the acquisition,

utilization , improvement and preservation of

a unit¶s manpower resources´



Dale S Beach

HRP is a process of determining and

assuming that the organization will have an

adequate number of qualified persons,

available at the proper times, performing jobsthat meet the needs of the enterprise and

which provide satisfaction for the individuals

involved´



OBJECTIVES

To ensure optimum use of HR currently

employed

To assess and forecast future skills required

To link HRP with Organizational Planning

To assess the surplus and shortage of human

resource

To anticipate the impact of technology on HR



OJECTIVES

To determine levels of recruitment and training

To estimate the cost of HR and housing needs

of employees

To provide a basis for management

development programmes. To facilitate productivity bargaining

To meet the needs of expansion and

diversification programmes.



Need and Importance

Helps in filling future job vacancies

To forecast the compensation cost

Identify gaps in terms of talent and quantity

Replacement in case of retire, death,

resignation or accident

Facilitates expansion and diversification

Reduce wastage of manpower which can betackled by providing adequate training



Need and Importance

Facilitates succession planning

Helps in planning for physical facilities like

canteen, staff quarters, dispensary and

school for children of the employees

At the national level, HRP facilitates

educational reforms, geographical mobility of

talent and employment generation.



Stages in HRP

1. Deciding goal or objectives of HRP According to

Sikula ³ The ultimate mission or purpose of human

resource planning is to relate future human

resource to future enterprise needs so as to

maximize the future return on investment in human

resource´

2. Estimating the future Organizational structure or

forecasting manpower requirements

3. Auditing Human resources

4. Job Analysis

5. Developing Human Resource Plan



RECRUITME NT

Meaning

Recruiting is the discovering of potential

applicants for actual or anticipated

organizational vacancies.



DEFI NITIONS

Flippo

³Recruitment is a process of searching for

prospective employees and stimulating and

encouraging them to apply for job in anorganization´



DEFI NITIONS

Dale S Beach

³Recruitment is the development and

maintenance of adequate manpower

resources. It involves the creation of a pool of available labour upon whom the organisation

can depend when its needs additional

employees´



DEFI NITIONS

Yoder

³Recruitment is a process to discover the

sources of manpower to meet the

requirements of staffing schedule and toemploy effective measures for attracting that

manpower in adequate numbers to facilitate

effective selection of an efficient working

force´



Process Of Recruitment

Planning and strategy Development: this begins

when personnel department receives requisition for

recruitment from any department

Searching : Locating required number and type of employees

Screening: Identification

Communicating : Terms and conditions of work and

information about the job given

Encouraging: attract employees to apply

Evaluating: this is evaluating the effectiveness of the

recruitment process



Sources of Recruitment

INTERNAL

Present employees

Employee referrals

Former employees Previous applicants

EXTERNAL

Media advertising

Recommendations by

present employees Government

employment agencies

Private employment

agencies



External sources continued

On- Campus recruitment

Labour Unions

Casual Applicants

Leasing

Head hunting



Internal recruitment

MERITS

Less costly

Morale of employees

increase Existing employees are

more reliable as record

available

Promotes loyalty andcommitment

Retain talent

DEMERITS

X Stagnation without new

blood

X candidate may not bethe best in the market

X may cause friction

internally

Xmay not be possible for jobs requiring creativity



EXTER NAL SOURCES

MERITS

People having requisite

skill, education and

training can be obtained Best selection possible

Expertise and

experience can be

made available

DEMERITS

More expensive and

time consuming

Orientation and trainingis necessary

Motivation and loyalty of

existing staff are

affected if higher post

are filled thru external

sources



Selection

Procedure to be referred from

Management by Manmohan Prasad



SELECTION

ME ANING

Selection is the process of choosing the most

suitable persons out of all the applicants.

Selection may regarded as a process of

rejection because generally more candidates

are turned away than hired.



STEPS I N THE PR OCESS OF

SELECTION

1. Scrutiny of application forms

2. Preliminary interview

3. Application blank ± has information about

*Identification *Education

*Experience*Expected

Salaries*Community activities* References



4.Employment Testa. Trade test

b. Psychological test: A ptitude test,

Intelligent tests, interest test, knowledgetest, projective tests, personality tests,

Judgement tests, Dexterity tests.



5. Employment Interview

6. Physical /Medical examination

7. Reference Check 8. Final Selection



Retention of manpower

Refer to the notes given at the photo copy

centre on the old and new methods of

retention.



Retention of manpower

Traditional methods

1. Competitive PayRates

2. ComprehensiveBenefits

3. Performance Reviews

4. CommunicationStrategies

5. Career Development

6. Training

7. Mentoring Programs

8. Life/Work Balance

9. 9.Incentive Programs



Manpower Retention

The new approach

1. Compensation

2. Job Design

3. Job customization

4. Social Ties

5. Location

6. Hiring



Career Planning and Succession

Planning

Career is viewed as a sequence of positions

occupied by a person during the course of his

life time. Objective Career)

Career may also be viewed as an amalgam

of changes in values, attitudes and motivation

that occur as a person grow older. Subjective

Career)



Career planning is important because

it helps the individual to explore,

choose and strive to derivesatisfaction with his own career

objectives.



Succession planning

Meaning :

Succession planning is the process or activities

connected with the succession of persons to

fill key positions in the organization hierarchyas vacancies arise.

The focus of attention is WHICH person



Why is a succession plan necessary?

Without a succession plan, every time an

employee leaves, is promoted or changes

jobs, performance of the new employee will

suffer. If a replacement needs to be foundoutside, costs go up and performance goes

down for at least one year, according to

research. A succession plan is also the core

of any program to develop high-potentialemployees.



Succession planning

Refer to the notes at the photo copy centre+

Case study on succession at GE



Case study

CEO succession planning at GE ( available at

the Xerox centre)

HRM 07-08-HR Chapter2

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