Slides HR Planning

8/11/2019 Slides HR Planning

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HR Planning Model

Organisational Plans & Objectives

Identify Future human resource Requirements

Compare with current HR inventory

Determine the Nos., Levels &

Criticality of Vacancies/ demand

Determine

Redundant Nos.

Analyse cost & time involved

in managing the Demand

Analyse cost & time involved

in managing the Surplus

Choose resources &

methods to fill vacancies Redeploy Retrench2


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3. When there are variances, actionplans must be formulated, e.g.,

a. for surpluses, will organization use

layoffs, retirement incentives, reducedhours, or something else?

b. for shortages, will organization useovertime, temporary workers, or recruit

new permanent workers?

How do you do it?...contd.

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1. Approaches to forecasting:

a. Qualitative:

Methods Used for Human Resource Planning:

i. Expert opinionsii. Delphi technique

b. Quantitative (mathematical modeling):

i. Regression analysis / Trend analysisii. Markov analysis

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2. Supply Analysis

a. Skills inventories

Methods Used for Human ResourcePlanningcontd.:

Human Resource InformationSystems (HRIS)

b. Replacement charts / Succession plans

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HR Forecasts

Labor demand

Strategic Planning

Succession Planning

Managing Retention

Labor supply

Labor markets

Specific shortages

Labor SupplyLabor Demand

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Process of HR Planning

?

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Dealing with surplus manpower Retrenchment / voluntary retirement:

Outplacement: ( helping employees search for other

employment opportunities ) Lay-offs : ( demand of products going down, raw material not

available etc.)

Leave of absence without pay: ( employees have options

to come back to same organisation after leave period or afterlooking for another job during the leave period).

Loaning: ( loaning employees to other organisations forspecified period ).

Work-sharing : ( 2 or more workers share the job & salary of

1 worker; operate on shorter shifts & take homecorresponding lower salaries.

Reduced work-hours & pay / Freeze new recruitments :

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Growing Importance of HR Planning

Current trends :

Restrictions due to legal & political

environment

Outsourcing

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HUMAN RESOURCE INFORMATION SYSTEMS

(HRIS)

PERSONAL DATA

Age, Gender, Dependents, Marital status, etcEDUCATION & SKILLS

Degrees earned, Licenses, Certi f ications

Languages spoken, Specialty ski l ls

Abil i ty/knowledge to operate specif ic machines/equipment/software

JOB HISTORY

Job Titles held, Location in Company, Time in each position, etc.

Performance appraisals, Promotions received, Train ing & Development

MEMBERSHIPS & ACHIEVEMENTS

Professional Associations, Recogni tion and Notable accomplishments

PREFERENCES & INTERESTS

Career goals, Types of positions sought

Geographic preferences

CAPACITY FOR GROWTH

Potenti al for advancement, upward mobil ity and growth in the company15


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PERSONNEL RATIOS

Past experience has developed these ratios for recruiting a Cost Accountant:

FOR EVERY 12 APPLICATIONS RECEIVED, ONLY 1 LOOKSPROMISING ENOUGH TO INVITE FOR AN INTERVIEW

OF EVERY 5 PERSONS INTERVIEWED, ONLY 1 IS ACTUALLYOFFERED A POSITION IN THE ORGANIZATION

OF EVERY 3 JOB OFFERS MADE, ONLY 2 ACCEPT THE POSITION

OF EVERY 10 NEW WORKERS WHO BEGIN THE TRAININGPROGRAM, ONLY 9 SUCCESSFULLY COMPLETE THE PROGRAM

THUS (statistically): 100 APPLICATIONS MUST BE RECEIVED, sothat

8.33 JOB INTERVIEWS CAN BE HELD, so that

1.67 JOB OFFERS CAN BE MADE, and

1.11 PEOPLE MUST BE TRAINED, so that we get

ONE NEW COST ACCOUNTANT!! !16


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Trend Analysis for HR Demand

1997 $2,351 14.33 164

1998 $2,613 11.12 235

1999 $2,935 8.34 352

2000 $3,306 10.02 330

2001 $3,613 11.12 325

2002 $3,748 11.12 337

2003 $3,880 12.52 3102004* $4,095 12.52 327

2005* $4,283 12.52 342

2006* $4,446 12.52 355

Total productivity or sales expected productivity or sales peremployee = Total number of employees required.

YEAR (SALES IN THOUSANDS) (SALES/EMPLOYEE) (NUMBER OF EMPLOYEES)

*Projected figures

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Succession / Career Planning

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Markov Analysis

Markov Analysis

A method for tracking the pattern of employee

movements through various jobs.

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Hypothetical Markov Analysis for a Retail Company

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Calculating Turnover and

Absenteeism

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Employee Turnover Rates

Computing Turnover Rates:

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Employee Turnover Rates

(contd)Computing Turnover Rates (contd):

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Highlights in HRM 6Example: Costs Associated With The Turnover Of One ComputerProgrammer

(Turnover costs = Separation costs + Replacement costs + Training costs)

Separation costs1. Exit interview cost for salary and benefits of both interviewer and departing employee during the exit

interview = $30+$30 = $60

2. Administrative and record-keeping action = $30

Total separation costs = $60 + $30 = $90

Replacement costs

1. Advertising for job opening = $2,500

2. Preemployment administrative functions and record-keeping action = $100

3. Selection interview = $250

4. Employment tests = $40

5. Meetings to discuss candidates (salary and benefits of managers while participating in meetings )= $250

Total replacement costs = $2,500 + $100 + $250 + $40 + $250 = $3,140

Training costs

1. Booklets, manuals, and reports = $50

2. Education = $240/day for new employees salary and benefits x 10 days of workshops, seminars, or

courses = $2,4003. One-to-one coaching = ($240/day/new employee + $240/day/staff coach or job expert) x 20 days of one-

to-one coaching = $9,600

4. Salary and benefits of new employee until he or she gets up to par = $240/day for salary and benefits x

20 days = $4,800

Training costs = $50 + $2,400 + $9,600 + $4,800 = $16,850

Total turnover costs= $90 + $3,140 + $16,850 = $20,080

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Employee Absenteeism Rates

Computing Absenteeism Rates

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