Lesson 2 Hrm

7/26/2019 Lesson 2 Hrm

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LESSON 2 : MANPOWER PLANNING OR HUMAN RESOURCE

PLANNING

STRUCTURE OUTLINE

2.1 Learning Objectives

2.2 Introduction, Meaning , Definition of manpower planning Human Resource

lanning

2.! "eed and importance for HR lanning

2.# rocess of Human Resource lanning

2.#.$ %orecasting Demand for &mplo'ees, Met(ods of (uman resource planning

2.#.2 %orecasting )uppl' for &mplo'ees and

2.#.! *alancing )uppl' +nd Demand

2. %unctions of HR planning

2.- 'pes and Levels of Human Resource lanning

2./ *enefits of Ma0ing HR effective

2.1 Importance of HRI)

2. )ummar'

2.$3 4lossar'

2.$$ +nswers to c(ec0 'our progress

2.$2 References

2.$! )uggested readings

2.$# erminal and model 5uestions

2.1 LEARNING OBJECTIVES

• o compre(end t(e meaning and definition of Human Resource lanning,



• o gain insig(t into t(e need and importance of HR

• o understand t(e process of HR,

• o e6plain t(e demand, suppl' forecasting and balancing t(e demand and

suppl' considerations

• o 0now t(e benefits, problems engulfing HR and suggestions for ma0ing

HR planning effective,

2.2 INTRODUCTION, MEANING, DEFINITION OF MANPOWER

/HUMAN RESOURCE PLANNING

As de!"ed #$ B%&&' '"d S()**, (uman resource planning is 7t(e process for

ensuring t(at t(e (uman resource re8uirements of an organi9ation are identified

and plans are made for satisf'ing t(ose re8uirements:.

Re!&&$ defined wor0force planning as; 7+ process in w(ic( an organi9ation

attempts to estimate t(e demand for labour and evaluate t(e si9e, nature and

sources of suppl' w(ic( will be re8uired to meet t(e demand.

2.+ NEED AND IMPORTANCE FOR HUMAN RESOURCE PLANNING

(e need for manpower planning is necessitated due to following reasons

1. o ensure t(at t(e organi9ation is rig(t si9ed to meet t(e current and t(e future

(uman resource re8uirements of t(e organi9ation.

2. o ensure t(at t(e organi9ation is read' to meet an' t'pe of contingenc' wit(

regard to its (uman resource needs and (ave enoug( surplus resources to meet t(e

e6igencies in t(e internal as w ell as t(e e6ternal environment.

!. o (elp t(e organi9ation in filling up t(e gaps w(ic( ma' arise out of t(eorgani9ations decision to e6pand diversif' and grow across t(e world

#. o ensure t(at t(e (uman resources are well prepared to ta0e up t(e c(allenges

of t(e present and future times b' providing t(em ade8uate training a nd

development opportunities from time to time.



. o (elp t(e individuals in fulfilling t(eir personal and professional growt(

re8uirements b' doing career planning for t(em and preparing t(em for ta0ing up

(ig(er level positions in t(e organi9ation t(roug( promotions, transfers job

enric(ment and job enlargement

-. o ensure t(at t(e organi9ation is financiall' prepared to fill up t(e future

manpower re8uirements of t(e organi9ation.

/. o ensure t(at t(e current pool of (uman resources are utili9ed optimall' and

most productivel'.

1. o see to it t(at t(e emplo'ees are promoted in t(e organi9ation in a ver'

s'stematic manner.

. o maintain an ade8uate reservoir of talent at all times in t(e organi9ation for

smoot( production and flow of activities.

$3. o prepare to fill up t(e posts in t(e near future b' resorting to timel'

succession planning.

$$. o meet up t(e organi9ational strategies of e6pansion and diversification in t(e

near future.

2. THE PROCESS OF HRP

H%-'" es)%(e &'""!"0 !s *e !s* %"(*!)" ) HR -'"'0e !( '!-s '*

e"s%!"0 *'* *e !0* e)&e #)'d *e #%s !* *e !0* '**!*%de '3!"0 *e

!0* s4!&&s *) e)- *e !0* 5)#s '* *e !0* *!-e.

S!-&$ s*'*!"0 !* '!-s '* '3!"0 *e !0* e)&e '* *e !0* '(e d)!"0 *e

!0* *!"0s '* *e !0* *!-e '* *e !0* &'(e. T!s !s '* H%-'" es)%(e

&'""!"0 !s '&& '#)%*. Hee *e )0'"!6'*!)" s*!3es *)'ds s*!4!"0 ' *'de

) #e*ee" *e s%&!es ) (%e"* -'")e !* *e %*%e de-'"ds ) *e

)0'"!6'*!)". I* !s -)e ) &ess '#)%* !0*s!6!"0 *e )0'"!6'*!)" '* '&& *!-es*) '3)!d '"$ 4!"d s)*'0es ) s%&%ses .#e('%se #)* *e s!*%'*!)"s 'e ")*

'3)'#&e *) *e )0'"!6'*!)".

1. H%-'" es)%(e 'ssess-e"*



H& HR manager begins wit( conducting an e6ternal and internal

environmental anal'sis to find out t(e e6isting suppl' of (uman resources

along wit( t(e available pool of 0nowledge s0ills and abilities at its disposal.

2. De-'"d F)e('s*!"0

(e ne6t logical step for t(e HR manager is to predict t(e future

re8uirements of t(e organi9ation in terms of t(e 8uantit' and 8ualit' of

(uman resources to (elp t(e organi9ation in ac(ieving t(e desired levels of

production .(ere it becomes imperative to 0now t(e future plans and

strategies of e6pansion growt( diversification etc in t(e local mar0ets or

international mar0ets.

+. S%&$ F)e('s*!"0

+part from demand forecasting it is important to assess t(e current

manpower suppl' wit( t(e organi9ation. <(en t(e organi9ation wants to fill

t(e positions from wit(in inside it ma' resort to promotions transfers job

enlargement and job enric(ment , w(ic( will entail t(e benefits of increasedmorale motivation and confidence of t(e emplo'ees . lus it also fulfils t(e

condition of doing ade8uate career planning for t(e emplo'ees. In case

nobod' fits t(e bill from wit(in inside, t(e organi9ation ma' loo0 out for t(e

rig(t fit for t(e job.

. M'*(!"0 De-'"d '"d S%&$

"ow it is time to tr' stri0e a tradeoff between t(e suppl' and demand of

(uman resources at its disposal w(ic( is absolutel' necessar' to plug t(e

gaps and also to ma0e sure t(at t(e organi9ation is not overstaffed at an'

point of time.

7. A(*!)" P&'"

(e last leg of (uman resource planning encompasses allotting t(e HR

functions and duties. "ow it is time to start t(e recruitment process b'

e6ternal or internal sources, selecting t(e rig(t candidate, inducting and

giving (im orientation, imparting training and development to t(e emplo'ees

and conducting performance appraisal. It aims at ensuring t(at t(e planning

matc(es t(e HR objectives and policies. (ere are all t(e c(ances of t(e

action plan being reviewed in terms of c(anging . see figure $.



F!0%e 1 : S*es !" %-'" es)%(e &'""!"0

2..1 F)e('s*!"0 de-'"d ) e-&)$ees

(e organi9ation 0eeps a tab on t(e current (uman resource pool and also 0eep on

assessing t(e future needs w(ic( is done t(roug( scanning t(e e6ternalenvironment . (e demand for (uman resources 0eep on fluctuating due to factors

ranging from e6ternal c(allenges , organi9ational decisions, wor0force factors .

(e e6ternal c(allenges could be due to economic developments or slowdowns,

w(atever t(e scenario of t(e econom', t(e various socio political legal and

tec(nical c(allenges w(ic( are becoming prominent due to t(e onslaug(t of

multinational organi9ations. +nd of course t(e ensuing competition w(ic( 0eeps

t(em on t(eir toes to fig(t for survival in t(is Darwin:s world w(ere survival of t(e

fittest can onl' save t(e organi9ations.

+part from t(e above factors , t(e demand forecasting would also depend upon t(e

current state of emplo'ment trends in t(e econom', t(e level of emplo'ee

productivit', t(e rate of emplo'ee attrition and turnover, t(e general trend of low

morale leading to absenteeism of t(e emplo'ees.



(e met(ods of forecasting used b' t(e organi9ation also pla' an important role

in (uman resource forecasting . Te HR )ess!)"'& %s%'&&$ )&&) *e

)&&)!"0 *ee s*es:

1. Te )4)(e '"'&$s!s

2. Te )4&)'d '"'&$s!s

+. Te 5)# '"'&$s!s

1.Te )4)(e '"'&$s!s

(e wor0force anal'sis ta0es into consideration t(e average loss of manpower in

t(e form of leaves retirement:s deat( transfer, la'off disc(arge w(ic( ma' (ave

ta0en place in t(e last few 'ears in t(e organi9ation. *esides t(e rate of emplo'ee

absenteeism and turnover is also accounted for. It is also advisable to ta0e into

consideration t(e rate of competition in t(e similar organi9ations in t(e econom'i.e (ow muc( emplo'ee poac(ing and fis(ing is ta0ing place and for w(at level of

positions is more vulnerable to being lured awa' wit( (eft' pac0ages and benefits

w(ic( is becoming more of a trend t(ese da's .t(e past e6periences and data base

of t(e emplo'ees ma' also prove to be 8uite useful in t(is regard.

2. Te )4&)'d '"'&$s!s

(e organi9ation also finds out t(e (uman resource re8uirements on t(e basis of

wor0load anal'sis, w(ere t(e organi9ation mig(t wor0 out t(e total t(e total man=

(ours re8uired to perform t(e tas0s in various departments at a point of time wit(reference to t(e planned output sc(edule after ta0ing into consideration t(e rate of

emplo'ee absenteeism , idle time etc. t(us t(e wor0ers level of productivit'

contributes substantiall' in calculating t(e wor0load anal'sis

+.J)# '"'&$s!s

>ob anal'sis is an important tec(ni8ue of (uman resource forecasting w(ic( (elps

t(e organi9ation in identif'ing t(e re8uisite 0nowledge s0ills and abilities in t(e

prospective emplo'ees of t(e organi9ation. It entails job description and job

specification.

>ob description describes t(e job in terms of t(e duties and responsibilities

involved in t(e job and re8uired to be performed b' t(e emplo'ees w(ile job

specification specifies t(e re8uisite 0nowledge s0ill and abilities of t(e prospective

emplo'ees .



2..2 F)e('s*!"0 *e s%&$ ) %-'" es)%(es

(e organi9ation prepares a manpower inventor' in order to assess t(e 8uantit'

and 8ualit' of (uman resources available at its disposal at a point of time to man

t(e various positions at all levels in t(e management (ierarc('. "evert(eless all t(e

organi9ations invariabl' resort to two major sources of (uman resources i.e from

internal and e6ternal sources.

(e internal (uman resource suppl' would be assessed in t(e form of profiling t(e

emplo'ees in terms of t(eir age, 8ualification, e6perience gender training job level

past performances and of course t(e future potential from time to time to be 0ept

for read' reference as and w(en re8uired.

"ow (ere it is again important to assess t(e re8uirements in terms of its growt(

e6pansions diversification internal movement in t(e form of transfers promotions,demotions retirements, la'offs retrenc(ment and voluntar' retirements .

)ome of most refereed tec(ni8ues of forecasting are preparing a staff table,

conducting t(e Mar0ov anal'sis and assessing t(e s0ill inventor'.

S*'!"0 *'#&e

(is table clearl' e6(ibits t(e number of emplo'ees in eac( job categor' in t(e

organi9ation. It also classifies t(e emplo'ees on t(e basis of t(eir age, gender,

spatial bac0ground 8ualification e6perience. (is (elps t(e HR manager to ensuret(at t(e e6isting (uman resource pool is optimall' utili9ed.

M'4)3 A"'&$s!s

(is tec(ni8ue (elps t(e organi9ation in drawing inferences from t(e past trends in

t(e movement of (uman resources wit(in t(e organi9ation t(roug( transters

promotions and attrition and turnover and uses t(is information to predict t(e

future manpower re8uirements of t(e organi9ation.

S4!&&s !"3e"*)$

+not(er tec(ni8ue is to prepare t(e s0ills inventor' of t(e available (uman

resources in terms of t(eir 0nowledge s0ill and abilities, ambitions and career

aspirations from time to time , at least ever' two 'ears to ensure t(at t(e' are being

trained and developed to ta0e up t(e newer responsibilities and duties .



2..+ B'&'"(!"0 s%&$ '"d de-'"d ()"s!de'*!)"s

*alancing suppl' and demand considerations for t(e (uman resources in t(e

organi9ation would call for ensuring t(at t(e demand for t(e current and t(e futuremanpower re8uirements is dul' met b' t(e HR department. (e organi9ation

s(ould be neit(er oversi9ed nor undersi9ed , it s(ould be ideall' rig(t si9ed as it

will not put a burden on t(e organi9ation financiall' as well. In toda':s scenario

w(ere most of t(e organi9ations are resorting to contingent wor0force i.e part

timers instead of permanent staff it becomes all t(e more difficult to meet up t(is

c(allenge of maintaining an optimi9ed amount of wor0force at all times. If 'ou

(ave a surplus of emplo'ees, t(is re8uires 'ou to consider emplo'ee la'offs,

retirements and situations w(ere emplo'ees ma' need to be demoted or moved into

a lateral position ?rat(er t(an receiving a promotion@. ransfers are also an optionsometimes to create a balance between t(e demand and suppl' of (uman resources.

)ome of t(e strategies t(at can be adopted to ensure a balance are la'ing off t(e

surplus staff t(roug( introducing voluntar' retirement plans, golden (ands(a0es

etc., introducing fle6i timing and wor0ing in fewer s(ifts t(an re8uired

Resorting to fle6i timing can (elp t(e organi9ation in meeting up t(e lesser demand

during periods of slowdown and lesser production . instead of la'ing off t(e

emplo'ees t(e compan' can reduce t(e number of (ours per wor0ing wee0 ,

reduce t(e wor0ing da's in a wee0 or s(ut down wor0ing on all t(e s(ifts

2. raining and developing t(e in (ouse emplo'ees can save t(e organi9ation

from t(e (assle of recruiting people from outside w(o ma' not be t(at committed

as t(e e6isting wor0force is to t(e organi9ation. Recruiting or promoting people

from wit(in will bring wit( it t(e benefits of increased morale and motivation of

t(e wor0ers wit( increased levels of job satisfaction and commitment.

!. Hiring more of a contingent wor0force t(an a permanent one is also an

alternative w(en it comes to creating a balance between t(e demand and suppl' of

emplo'ees .

#. Aontract wor0ers are used w(en special s0ills are needed on a limited basis or

limited amount of time.



. Leasing of t(e emplo'ees from t(e leasing companies is anot(er p(enomenon

w(ic( is fast pic0ing up in t(e corporate world as it bot( c(eap and feasible for

organi9ations involved in seasonal production rat(er t(an t(roug(out t(e 'ear.

CHEC8 9OUR PROGRESS

F!&& !" *e #&'"4s

1. Human resources planning is a process t(at identifiesBBBBBBBBB

needs for an organi9ation to ac(ieve its goals .

2. Human demand and suppl' can be balanced b' using BBBBBBBBB..to

prepare emplo'ees to perform certain tas0s or jobs.

!.If 'ou (ave a surplus of emplo'ees, t(is re8uires 'ou to consider

BBBBBBB..

#BBBBBB.. (elps in determining t(e number and t'pe of personnelC(uman

resources re8uired in future.

. %or forecasting suppl' of (uman resource we need to consider

BBBBBBBBB..

2.7 FUNCTIONS OF HR PLANNING

+ compan' succeeds in large measure because of t(e s0ill, creativit' and

dedication of its managers and emplo'ees. Human resource planning is t(e process

of ma0ing sure t(e compan' (as t(e rig(t people in t(e rig(t positions == t(ose w(o

possess t(e s0ills, e6perience and spirit of teamwor0 re8uired for t(e compan' to

grow and effectivel' compete. lanning staff levels re8uires comparison of present

and future needs of t(e organi9ation wit( present resources and future predicted

resources.

Ass%!"0 Ade%'*e S*' Le3e&s

+ primar' function of (uman resources planning is ensuring various compan'

departments (ave sufficient staff to complete all t(e wor0 re8uired to meet t(e

organi9ation:s goals. (e business owner also must ma0e sure t(at t(e wor0load is

balanced == no individual or department s(ould be so overburdened wit( wor0 t(at

it is impossible to complete all assigned tas0s on time. (e results of t(is t'pe of

poor (uman resource planning include (eig(tened stress levels for emplo'ees,



burnout, missing deadlines and mista0es and errors. +ll of t(ese outcomes

negativel' affect productivit' and ma' result in (ig(er emplo'ee turnover.

M'*(!"0 S4!&&s *) C%e"* O0'"!6'*!)"'& Needs

+s t(e compan' grows, t(e management function becomes more comple6. Instead

of ever'one reporting to t(e owner, la'ers are added to t(e organi9ation structure.

(e management team must supervise additional emplo'ees. +ddressing t(ese

c(anging needs re8uires t(e business owner to determine if t(e current

management team (as t(e necessar' e6perience and s0ills to succeed in a larger,

more structured, more comple6 organi9ation. If (e identifies gaps, (e creates new

positions and (ires new people.

B%!&d!"0 '" E*!('& B%s!"ess C%&*%e

+ business owner often creates a code of conduct for emplo'ees to follow w(ic(

defines w(at is considered et(ical == good == conduct in dealing wit( customers,

suppliers and co=wor0ers. (e aim of building an et(ical culture can be furt(ered

b' bringing on new (ires w(o (ave a trac0 record of (ig( et(ical be(avior w(ic(

ma' re8uire a more in=dept( interviewing process in w(ic( t(e (iring manager

as0s candidates (ow t(e' (ave dealt wit( et(ical dilemmas on t(e job. >ust because

a sales manager (as a trac0 record of meeting or e6ceeding 8uotas in past

positions, (e ma' not live up to t(e et(ical standards t(e owner wants to set for (is

organi9ation.

F!"d!"0 Te'- P&'$es

+ critical but difficult aspect of (uman resource planning is determining w(et(er

prospective new (ires will fit in wit( e6isting members of t(e team. (e owner

wants to foster a (armonious wor0 environment c(aracteri9ed b' open and (onest

communication, so t(e more specificall' (e can articulate t(e corporate culture (e

see0s to create, t(e better t(e c(ances t(at candidates for new positions can

articulate w(' t(e' believe t(e' would fit in.

Ide"*!$!"0 E-&)$ees Re'd$ ) Ad3'"(e-e"*

Human resource planning s(ould include creating a pat( for advancement for eac(

emplo'ee. (e business owner must assess w(ic( emplo'ees are read' to move up

in t(e organi9ation and w(ic( mig(t need more seasoning in t(eir current positions.

He wants to ma0e sure (is organi9ation is developing its own in=(ouse managerial



talent, and (e ma' provide education and training opportunities to move t(e

emplo'ees down t(e pat( toward ta0ing on additional responsibilities.

2.; LEVELS OF HR PLANNING IN HUMAN RESOURCEMANAGEMENT ARE AS FOLLOWS:

HR can be made at different levels and for different purposes. "ational planners

ma' ma0e an HR plan at t(e national level w(ere as a compan' ma' ma0e a HR

plan at t(e unit level.

1. HRP '* N'*!)"'& Le3e&:

<(en it comes to HR at t(e national level , it becomes t(e responsibilit' of

t(e government to ta0e care of t(e basic educational facilities for its people

especiall' t(e primar' and t(e secondar' education along wit( t(evocational and tec(nical education w(ic( is t(e bac0 bone of an' nation.

Regulated efforts need to be made at t(e national level to invest in t(e

training and development of t(e (uman resources to turn t(em into assets for

t(e nation and to utili9e t(em optimall'. (is would also (elp in t(e

sustainable long term development of t(e nation as well.

2. HRP '* *e Se(* )'& Le3e&:

India (as been following t(e polic' of five 'ear plans since independence to

ensure regulated development of a selected sector in a n effective and

efficient manner, since t(en eac( plan (as been concentrating on a particular

sector . (is (as been facilitated t(roug( proper allocation of resources and

budgets to ac(ieve t(e desired level of improvement t(ereof. Li0e t(e first

five 'ear plan was dedicated to agriculture, t(e second one was for industr'

and so fort(. (us (uman resource planning at t(e sect oral level (elps in

planning for a particular sector and allocating ade8uate resources depending

upon t(e strategic contribution and priorit' accorded to it in t(e economic

plans.

+. HRP '* *e I"d%s*$ Le3e&Human resource planning at t(e industr' level ensures t(at a rig(t 8uantit'

and 8ualit' of (uman resources are trained and developed for t(at particular

industr'. &.g of late India (as been doing 8uite well in software development

and conse8uentl' a lot of impetus (as been given to tec(nical and computer

education in t(e countr'. (is (as not onl' provided t(e talent pool but (as

also put India into t(e league of computer savv' nations.



#. HRP '* *e U"!* Le3e&

"ow t(e closest is t(e (uman resource planning at t(e unit level w(ic( is t(e

most significant as it ta0es into consideration t(e organi9ations plans for

growt( e6pansion diversification etc. t(e corporate strateg' at t(e top level

determines w(at is t(e number of people re8uired in w(ic( department and

w(at s0ills 0nowledge and abilities on t(e part of t(e emplo'ees will (elp

t(e organi9ation in ac(ieving its desired targets. (e most important is t(e

t'pe of industr' i. e w(et(er it is a c(emical, automobile, %MA4, Aement,

manufacturing or services etc as it will be re8uired to (ave t(e rig(t man

wit( t(e rig(t 8ualification for t(e core area followed b' t(e re8uirement in

t(e au6iliar' areas or departments. &.g. if it is a c(emical or p(armac'

compan' t(e most important or t(e core department will be R D , for

w(ic( t(e' will be recruiting people wit( a degree and penc(ant for researc(

and development. (e ot(er supporting departments will be secondar'.

. HRP '* *e De'*-e"*'& Le3e&

)ince t(ere are a number of functions being interlin0ed and performed in t(e

organi9ation, it becomes imperative to fill all t(e strategic positions in eac(

department wit( t(e rig(t man at t(e rig(t place. +ll t(e departments ranging

from mar0eting, (uman resources, finance, production, I etc will (ave

ade8uate line and staff positions to (elp and support t(e core department of

t(e organi9ation.

2.< Be"e!*s ) -'4!"0 HRP ee(*!3e

Human resource planning entails t(e following benefits to t(e organi9ations

$. +t t(e outset it aims at c(ec0ing t(e corporate plan of t(e organi9ation.

2. *' offsetting uncertainties and c(anges to t(e ma6imum possible e6tent, t(e

organi9ations are able to (ave t(e rig(t men at t(e rig(t place doing t(e rig(t

t(ings .

!. It provides ample training and developmental opportunities to t(e emplo'ees

at all times and (elps t(em in ma0ing mar0et read'.

#. It also (elps t(e organi9ation in determining t(e rig(t compensation

pac0ages for t(e emplo'ees in accordance wit( t(eir 0nowledge s0ills and

abilities and t(us (elps in budgeting for salar' en(ancements if an' for t(e

organi9ation.



. It (elps in foreseeing t(e need for redundanc' and plan to c(ec0 it or to

provide alternative emplo'ment in consultation wit( t(e trade unions, ot(er

organi9ations and government t(roug( remodelling organi9ational, industrial

and economic plans.

-. HR also (elps t(e organi9ation in contemplating an' c(anges in t(e

attitudes, values and aptitudes of (uman resources and to c(ange t(e

tec(ni8ue of interpersonal management.

/. HR (elps to meet up all 0inds of t(e re8uirements of t(e organisation.

1. &nables t(e organi9ations to Aounterbalance insecurit' and c(ange.

. Helps in c(ec0ing labour imbalance in t(e organi9ation

$3.&nables Rig(t=si9ing t(e (uman resource re8uirements of t(e organisation

$$.&nables to meet e6pansion and diversification needs of t(e organisation.

$2.%ulfils Individual "eeds of t(e &mplo'ees.

$!.o A(ec0 >oblessness

P)#&e-s !"3)&3ed !" -'4!"0 H%-'" Res)%(e &'""!"0 ee(*!3e

"ow (uman resource planning is not free form administrative and operational

(assles w(ic( could arise due to a number of factors as delineated below.

Human resource planning can prove to be onl' be as good as t(e abilit' of

t(e compan' to predict t(e e6ternal environmental trends in t(e econom',

including t(e t(reats and opportunities on w(ic( t(e compan' (as no control.

(e tec(nological spurt at t(e wor0place due to influ6 of newer

tec(nologies ma0es it difficult for t(e organi9ations to 0eep a read' wor0force to

meet up t(e c(allenges of tec(nological upgrdation in toda':s fast paced business

environment.

It becomes difficult to ma0e accurate predictions wit( regard to people:s

decisions to sta' put wit( t(e organi9ation or leave for better opportunities wit( in

no time and sometimes wit(out ade8uate notice period w(ic( ma0es it all t(e

difficult for HR mangers to fill in t(e vacant positions at t(e rig(t time.



S%((ess!)" P&'""!"0

Te )&e ) *) &e'des! !s '-&$ -'"!es*ed !" *e! e'"es* e)*s *)

s%((ess!)" &'""!"0 ) *e )0'"!6'*!)" !( !s )"e ) *e !0&$ s!0"!!('"*

e"de'3)s ) HRD !"!*!'*!3es #$ *e *) -'"'0e-e"*.

• (e top leaders (ave ambition not for t(emselves but for t(eir

organi9ations

• (e' routinel' select superb successors. &.g Ratan ata c(ose A'rus

M'str' as (is successor, *ill gates c(ose )at'a "adella as (is successor

to Microsoft, >ac0 <elc( c(ose >im Mc"ern' for 4&, t(e top

management at Infos's (as of course been a pioneer in doing succession

planning on time wit( "ara'an Murt(' passing on t(e reins to "andan

"ile0eni, t(en to ) 4opala0rs(nan and now ). D.)(ibulal? due to retire in

23$@

• (e' want to see t(eir organi9ations become even more successful in t(e

ne6t generation.

• (e' are Aomfortable wit( t(e idea t(at most people won:t even 0now

t(at t(e roots of t(at success trace bac0 to t(em. +n' succession planning

of t(e organi9ation would follow t(e steps in identif'ing t(e potential

candidates to fill up t(eir s(oes or ot(er important positions in t(e

organi9ation as t(e posts fall vacant. %or t(e simple reason t(at t(e s(ow

must go on irrespective of t(e person at t(e (elm of affairs.



S t e p 1 : I d e n t i f y c r i t i c a l p o s i t i o n sS t e p 2 : I d e n t i f y c o m p e t e n c i e sS t e p 3 : I d e n t i f y s u c c e s s i o n m a n a g e m e n t s t r a t e g i e s

S t e p 4 : D o c u m e n t a n d i m p l e m e n t s u c c e s s i o n p l a n sS t e p 5 : E v a l u a t e E f e c t i v e n e s s

.

igure 2 : steps in succession planning2.= IMPORTANCE OF HUMAN RESOURCE INFORMATION S9STEM

+ll t(e organi9ations toda' are rel'ing on t(e time tested met(od of see0ing t(e(elp of (uman resource information s'stem for maintain an aut(entic data base of

all t(eir (uman resources in a computeri9ed s'stem. (is proves to be 8uite (and'

t(ese da's as most of t(e organi9ations (ave automated attendance s'stems of

entr' and e6it of t(e emplo'ees. +part for t(is it also (elps in t(eir salar' and

compensation w(ic( is computer generated.



$@ P)!&!"0 *e es)"'& de*'!&s of t(e candidate covering (is age,

academic 8ualification, social status , place of birt( and education, wor0

e6perience etc.

2@ Te e(%!*-e"* de*'!&s including (is date of joining t(e current job,

(is ran0 in t(e written test and group discussion and interviews etc. !@ Te )4 E>e!e"(e de*'!&s including (is e6periences in t(e previous

companies, (is wor0 profile covering (is duties and responsibilities in t(e

previous job, an' promotions transfers , job enlargement, job enric(ment and

performance grades over t(e 'ears including (is reasons for e6iting t(e

previous organi9ation are also an important source of information for t(e

current organi9ation

#@ Te e)-'"(e ''!s'& de*'!&s covering (is past appraisals and t(e

grades t(ere of in eac( position over t(e 'ears, w(et(er t(e person (as been

appraised for (is potential ,(is be(avior in t(e critical incidents (is overall

organi9ational commitment is also recorded in bot( 8uantitative and

8ualitative terms.E

@ Te T'!"!"0 de*'!&s covering t(e amount and nature of training being

imparted to (im during (is tenure and w(at are t(e future re8uirements of

training b' (im

-? O*e s!0"!!('"* de*'!&s wit( regard to (is (ealt(, personal or marital

problems, an' issues wit( regard to drug addiction, smo0ing or alco(olism

w(ic( mig(t create problems for (is fellow colleagues or spoil t(e internalenvironment of t(e organi9ation are some of t(e issues of great concern

w(ic( are dul' recorded in t(e HRI) . )ee e6(ibit $.



"eedless to mention (ere t(at an HRI) s'stem is a part of t(e organi9ations larger

Management information s'stem?MI)@. It 0eeps a complete record of t(e past

present and t(e future re8uirements of t(e organi9ation in terms of (uman

resources. (e various contributions of an HRI) s'stem to t(e HR department can be summari9ed as belowE

1. I* e&s *e )0'"!6'*!)" !" HR &'""!"0 '"d '"'&$s!s: !* *'4es ('e )

• reparing Organi9ation c(arts

• Ma0ing staffing projections

• reparing s0ill inventories

• Doing turnover anal'sis

• +bsenteeism anal'sis

•

Restructuring costing• Internal job matc(ing

• +nd job description trac0ing

2. E%'& e-&)$-e"* ))*%"!*!es : !* !s !"3)&3ed !"

• a0ing +ffirmative action plan

• +pplicant trac0ing



• <or0force utili9ation

• +vailabilit' anal'sis

+. S*'!"0 '(*!3!*!es !"(&%des

• Hunting and finding out Recruitment sources

• +pplicant trac0ing• >ob offer refusal anal'sis

. HR de3e&)-e"* : !* e"()-'sses '(*!3!*!es '"0!"0 )-

• &mplo'ee training profiles

• raining needs assessment of t(e emplo'ees

• )uccession planning

• Aareer interests and e6perience

7. C)-e"s'*!)" '"d #e"e!*s : !* e"*'!&s

• (e pa' structures and t(eir revisions from time to time

• <age and salar' costing

• %le6ible benefit administration

• Facation usage

• *enefit usage anal'sis

;. E-&)$ee e'&* s'e*$ '"d e&'e '"d se(%!*$: !* &))4s !"*)

• &mplo'ee safet' training measures

• +ccidents records

• Material data records

<. E-&)$ee '"d &'#)% e&'*!)"s: *!s 'se(* *'4e ('e )• Gnion negotiation costing

• +uditing records

• +ttitude surve' results

• &6it interview anal'sis

• &mplo'ee wor0 (istor'

(us it can be establis(ed t(at (aving an HRI) s'stem not onl' (elps but aids in

t(e smoot( functioning of t(e HR department especiall' in t(e fulfillment of t(ever' first function i.e (uman resource planning.

CHEC8 9OUR PROGRSS 2

S*'*e e*e *%e ) '&se



$. lanning staff levels re8uires t(at an assessment of present and future needs of

t(e organi9ation be compared wit( present resources and future predicted

resources.

2. OD does not promote t(e collaborative spirit and self renewing s0ills of its

emplo'ees.

!. o succeed in toda':s d'namic and strategic HR world, we A+": afford HR

staff w(o are administrators of programs, w(o (ave no abilit' to t(in0

strategicall'.

#. )uccession planning is a process w(ereb' an organi9ation ensures t(at

emplo'ees are recruited and developed to fill eac( 0e' role wit(in and outside t(e

compan'.

. Human resource information s'stems ?HRI)@ are a met(od b' w(ic( an

organi9ation collects, maintains and reports information on people and jobs and t(einformation is generall' stored in (ard files.

2.@ SUMMAR9

Human resource planning is all about ensuring t(at t(e organi9ation (as t(e rig(t

number of people at t(e rig(t place doing t(e rig(t t(ings at t(e rig(t time . t(e

process encompasses doing t(e current (uman resource assessment, forecasting

t(e demand and suppl' of (uman resources and matc(ing t(e demand and suppl'

to ensure smoot( functioning of t(e organi9ation t(roug( optimum utili9ation in

t(e most effective and efficient manner.

2.1 GLOSSAR9

H%-'" es)%(es &'""!"0; it is a process t(at identifies current and future

(uman resources needs for an organi9ation to ac(ieve its goals

HR de-'"d )e('s*!"0; HR forecasting is t(e process of estimating demand for

and suppl' of HR in an organi9ation. Demand forecasting is a process of

determining future needs for HR in terms of 8uantit' and 8ualit'.

HR s%&$ )e('s*!"0; )uppl' is anot(er side of (uman resource assessment. It

is concerned wit( t(e estimation of suppl' of manpower given t(e anal'sis of

current resource and future availabilit' of (uman resource in t(e organi9ation. It

estimates t(e future sources of HR t(at are li0el' to be available from wit(in an

outside t(e organi9ation.



S%((ess!)" &'""!"0: )uccession planning is a process w(ereb' an organi9ation

ensures t(at emplo'ees are recruited and developed to fill eac( 0e' role wit(in t(e

compan'

2.11 ANSWERS TO CHEC8 9OUR PROGRESS

A"ses *) (e(4 $)% )0ess 1

$. Aurrent and future (uman resources

2. )0ill training programs

!. &mplo'ee la'offs, retirements

#. Demand forecasting

. Internal and e6ternal suppl'.

A"ses *) (e(4 $)% )0ess 2

$. rue

2. %alse ?it does@

!. rue

#. %alse ?onl' wit(in@

. %alse ?in central (uman resource data ban0@

2.12 REFERENCES

David + Decen9o )tep(en Robbins, ersonnel C Human Resource

Management, rentice (all, India

Des(pande, ). ?$2@. Aompensation Legislation in India. <(at G) investors need

to 0now. Compensation & Benefits Review, 24(5), /=-3.

.+s(wat(apa, Human Resource and personnel Management= e6t and Aases,

MH

<a'ne % Aascio, Managing (uman resources, MH

2.1+ SUGGESSTED READINGS



F) Rao, Human Resource Management= e6t and Aases, &6cel *oo0s

>o(n M Ivancevic(, Human Resource Management, MH

4ar' Dessler, Human Resource Management, rentice (all, India

Mac(ael R Aamell, "obert % &lbert Robert D Hattfield, Human Resource

Management, rentice (all, India

2.1 TERMINAL AND MODEL UESTIONS

$. <(at do 'ou understand b' (uman resource planningJ Discuss t(e

objectives of HR.

2. Outline t(e steps involved in HR.

!. &6plain t(e meaning and importance of (uman resource planningin toda':s uncertain and volatile business environment.

#. Discuss t(e importance of (uman resource planning in a large

organi9ation vi9 a vi9 a small organi9ation.

. <(at are t(e various met(ods used in forecasting t(e demand and

suppl' for emplo'ees in an organi9ationJ

-. HR is a prere8uisite for effective management of (uman

resources of an organi9ation. +nal'9e t(e significance of HR in

t(e lig(t of t(is statement.

/. <(' do 'ou t(in0 t(at t(e HRI) is pla'ing an important role in

(uman resource planning t(ese da's.

Lesson 2 Hrm

Documents

Transcript of Lesson 2 Hrm