Chapter -5 Human Resource Planning
Transcript of Chapter -5 Human Resource Planning
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Chapter-5Human ResourcePlanning.
By-Prof Priyanka kedia.
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The Process of Human Resource
Planning
Organizations need to do humanresource planning so they can meetbusiness objectives and gain acompetitive advantage overcompetitors.
Human resource planning compares the
present state of the organization with itsgoals for the future.
Then identifies what changes it must makein its human resources to meet those
goals.
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Overview of the Human Resource Planning
Process
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HR Planning Process
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HR Planning Model
FORECASTINGDEMAND
CONSIDERATION
Product/ServicesTechnology
Economics
TECHNIQUES
Trend analysis
Managerial estimate
Delphi Method
BALANCE SUPPLYAND DEMANDRECRUITMENT
Full TimePart Time
Recalls
REDUCTIONS
Terminations
Layoffs
FORECASTSUPPLYINTERNAL
Staffing tables
Skills inventories
Succession Planning
EXTERNAL
Demographicchanges
Labor Mobility
F H R
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Formu at ng Human Resource
Planning.
Recruitment Plan.
Redeployment Plan
Redundancy Plan.
Training Plan.
Productivity Plan.
Retention Plan.
Check/review points.
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Responsibility of HRP
Assist and counsel operatingmanagers to plan and set objectives.
Collect and summarise manpower
data keeping long run objectives andbroad organizational interests in mind.
Monitor and measure performanceagainst the plan and keep top
management informed about it. Provide proper research base for
effective manpower and organisational
planning.
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Barriers to HRP
Time Consuming Financial forecasting takes precedence over HRP
Uncertainties
Non-involvement of operating managers
Inadequate Information system Trade unions
Employers
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Human Resources Information System
The human resources information system is a
systematic procedure for collecting, storing,
maintaining retrieving and validation data needed
by an organization about its human resources.
Pick your HRIS carefully based on the capabilities
you need in your company.
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Steps in implementation an HRIS
Step 1:Inception of idea
Step 2:Feasibility Study
Step 3:Selecting a Project team
Step 4:Defining the requirementsStep 5:Vendor AnalysisStep 6:Package Contract Negotiation
Step 7:TrainingStep 8:Tailoring the system
Step 9:Collecting the data
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Step 10:Testing the system
Step 11:Starting up
Step 12:Running in parallel
Step 13:Maintenance
Step 14:Evaluation
HRIS is not just useful in human resources planning.
Its uses extent to the whole gamut of HRM.
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Human Resource Forecasting
HR Forecast ing
attempts to determine
the supply and
demand for varioustypes of human
resources, and to
predict areas within the
organization wherethere will be labor
shortages or
surpluses.
There are three major
steps to forecasting:
1.Forecasting thedemand for labor
2. Determining labor
supply
3. Determining laborsurpluses and
shortages
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HUMAN RESOURCE PLANNING
FORECASTING HR REQUIREMENTS (DEMAND ANALYSIS)
(Trying to predict future staffing needs)Managerial Estim ates
Sales Project ions
Simulat ions
Vacancy An alysis (projected turno ver)
FORECASTING HR AVAILABILITY (SUPPLY ANALYSIS)
(Predicting worker flows and availabilities)
Succession o r Replacement Charts
Skil ls Inv entor ies (use of HRIS)Labor Market An alysis
Markov An alys is (Transi t ion Matr ix)
Personnel Ratios
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Forecasting the Demand for Labor
1) Expert Forecast
In this method managers estimate future human resource
requirements, using their experiences and judgments' to good
effect.
2) Ratio Analysis
A forecasting technique for determining future staff needs by
using ratios between a causal factor and the number of
employees needed. Assumes that the relationship between the causal factor and
staffing needs is constant.
for E.g.- Sales volume and no of employees needed.
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3) The Graphical Method ( Scatter plot).
A graphical method used to help identify therelationship between two variables.
SIZE OF HOSPITAL NUMBER OF NURSES
200 240300 260
400 470
500 500
600 620
700 660800 820
900 860
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Determining the
Relationship Between
Hospital Size and
Number of Nurses
Forecasting HR Needs
Scatter plot
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4)Trend Analysis
Constructing and applying statistical models that predict labor demand for thenext year, given relatively objective statistics from the previous year.
2001-02 Production of Units :5,000
2002-03 No. of Workers :100
Ratio :100:5000
2003-04 Estimated Production :8,000
No. of Workers required :8000 100/5000 = 160
If supervisors have a span of 20 workers, 8 supervisors are also needed in 2003-
04. ( 1 suprervisors - 20 workers, 160 workers how many ??)
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5)SIMULATION MODEL/REGRESSION FORECAST
TARGET STORES STAFFING FORECAST
MODEL
Y = 8 + .0011(X1) + .00004(X2) + .02(X3)
Y = Number of emp loyees needed to staf f the store
X1 = Square feet of sales spaceX2 = Popu lat ion of m etropol i tan area
X3 = Projected annual dispo sable income in mi l l ions of d ol lars
Y = 8 + .0011(50,000sq ft) + .00004(150,000popul) + .00000002($850million)
Y = 8 + 55 + 6 + 17
Y = 86 employees needed at this store
6)VACANCY ANALYSIS
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6)VACANCY ANALYSISHistoric departures used to project turnover
LEVEL # EMPL TURN % Expected Vacancies Expected toRemain
TOP MGMT 100 20 % 20 80
MID MGMT 200 24 % 48 152
LOW MGMT 600 22 % 132 468
SKILLED W 600 16% 96 504
ASSY WKRS 2000 12 % 240 1760
TOTALS 3500 5362964
AVERAGE TURNOVER PERCENTAGE = 536 / 3500 =.1531
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7)Workload analysis: Based on the planned output, a firm tires tocalculate the number of persons required for various jobs.
An example of workload analysis
Planned output for the year 10,000 pieces
Standard hours per piece 3 hours
Planned hours required 30,000 hours
Productive hours per person per year 1,000 hours (estimated on annual
basis)
(allowing for absenteeism, turnover, idle time etc.)
No. of workers required 30
If span of control in the unit is 10 per officer, then 3 officers are also required.
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8)Workforce Analysis: All relevant factors in planning manpower
flows in a firm such as transfers, promotions, new recruitments,
retirement, resignation, dismissal etc are taken into account while
estimating HR needs
Manpower flows in a bankPromotions out
Transfers In > > Job Hopping
> Transfers Out
> Retirement
> VRS Scheme (Golden handshake)
Recruits In > > Discharge or Dismissal
> Terminations
> Resignations
Promotions In > > Retrenchment
> Attractions in Other Banks, etc.
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9)Delphi Technique
This technique calls for a facilitator to solicit andcollate written, expert opinion on labor forecast.
After answer are received, a summary of the
information is developed and distributed to theexpert, who are than requested to submit revised
forecast.
Expert never meet face-to-face, but rather
communicate through the facilitator.
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10)Computerized Forecast
The determination of future staff needs by
projecting a firms sales, volume of production,
and personnel required to maintain this required
volume of output, using computers and software
packages. Employers also used computerized
system to personnel requirements .
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11) Job Analysis
Job analysis helps in finding out the abilities or skills
required to do the jobs efficiently. A detailed study of
jobs is usually made to identify the qualification and
experience required for them.
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Determining Labor SupplyPredicting Worker Flows and AvailabilitiesA) Internal Labor Supply) a manpower inventory in terms of the size and
quality of personnel available (their age, sex,
education, training, experience, job performance,
etc) is usually prepared by HR departments.
Several techniques are used while ascertaining
the internal supply of manpower (a supply of
employees to fill projected vacancies can come
from within the firm or from new hires ).
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Internal Supply Techniques.
1)Staffing table:
Shows the number of employees in each job, how they are utilized
and the future employment needs for each type of job.
2)Succession or Replacement Charts
Who has been groomed/developed and is ready for promotion right
NOW?
3)Transition Matrices (Markov Analysis)
A chart that lists job categories held in one period and shows the
proportion of employees in each of those job categories in a future
period.
It answers two questions:
1. Where did people in each job category go?
2. Where did people now in each job category come from
4) Skills inventory:
A skills inventory is an assessment of the knowledge, skills and
abilities of the current employees. This record should beupdated every 2 years and shou ld include the changes.
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Estimated internal labour supplyfor a given firm
The FirmSources of Inflows
Transfers
Promotions
New Recruits
Recalls
Promotions
Quits
Terminations
Retirements
Deaths
Layoffs
Employees In Employees Out
Current
staffing
level
Projectedoutflows
this year
Projected
inflows
this year
Firms internal
supply for this
time next year
+ =
Projected Outflows
Current Staffing
Level
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SUCCESSION PLANNING
REPLACEMENT CHARTFOR EXECUTIVE POSITIONS
POSITION REPLACEMENT CARDSFOR EACH INDIVIDUAL POSITION
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POSITION WESTERN DIVISION SALES MANAGER
DANIEL BEALER Western Division Sales Mgr Outs tanding
PRESENT PROMOTION
POSSIBLE CANDIDATES CURRENT POSITION PERFORMANCE POTENTIAL
SHARON GREEN Western Oregon Sales Manager Outstanding
Ready NowGEORGE WEI N. Californ ia Sales Manager Outs tandin g
Needs Trainin g
HARRY SHOW Idaho/Utah Sales Manager Satisfacto ryNeeds Trainin g
TRAVIS WOOD Seattle Area Sales Manager Satisfacto ryQuestionable
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Management
Replacement ChartShowing
Development Needs
of Future Divisional
Vice President
Manual System and Replacement Chart (contd)
Forecasting the Supply ofInside Candidates
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Figures in circles show the transition percentages
80%
12
20%
3
6%
2
11%
4
83%
30
11%
11
66%
63
8%
8
10%
29
72%
207
2%
6
16%
46
6%
86
74%
1066
20%
288
15%
14
2003-2004 Store Asst. Store Section Dept. Sales ExitManagers Managers Heads Heds Executives
Store Managers
(n = 15)
Asst. Store
Managers
(n = 36)Section
Heads
(n = 94)
Departmental
Heads
(n = 288)
SalesExecutives
(n = 1440)
Forecasted
Supply 16 41 92 301 1072 353
Markov Analysis
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Skills inventory
Name : A.K. Sen Date printed : 1-4-2004
Number : 429 Department : 41
Key words Work experience
Word Description Activity From To
Accounting Tax Supervision 1998 2000 Tax clerk ABC Company
and analysis
Book Keeping Ledger Supervision 2000 2002 Accountant XYZ Co.
Auditing Computer Analys is 2002 2003 Chief Accounts TT Bank
records Officer
Education Special Qualifications Membersh ips
Degree Major Year Course Date 1. AIMA
MBA Finance 1998 DBF 1996 2. ISTD
B.Com Accounts 1995 Risk Management 1999 3. ICA
Computer Languages Position Location HobbiesLiteracy preference choice
Tally French Accounting Kolkata Chess
Banking Auditing Delhi Football
Software Bangalore Boating
Employees Signature __________ HR Department________
Date _______________________ Date ________________
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B)External Labour supply:
External hires need to be contacted when suitable internalreplacements are not available.
A growing number of firms are now using computerized human
resource information systems to track the qualifications of
hundreds or thousands of employees. HRIS can provide managers
with a listing of candidates with required qualifications after
scanning the data base.
Human Resource Information Systems (HRIS)
An employee database that can be searched when vacancies occurs.
Personnel / Yield Ratios
How much work will it take to recruit one new accountant?
HUMAN RESOURCE INFORMATION SYSTEMS
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HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
PERSONAL DATA
Age, Gend er, Dependents , Marital status , etcEDUCATION & SKILLS
Degrees earned, Lic enses , Cert if ications
Languages s pok en, Special ty s ki l ls
Ab i l i ty/kn ow ledge to operate specif ic
machines/equipment /sof tware
JOB HISTORY
Job Tit les held, Locat ion in Company, Time in each posit ion , etc.
Performance app raisals, Prom otion s received, Trainin g &
Development
MEMBERSHIPS & ACHIEVEMENTS
Profession al Ass ociat ions, Recog ni t ion and Notable
accompl ishments
PREFERENCES & INTERESTS
Career g oals, Types o f pos i t ions s oug ht
Geographic preferences
CAPACITY FOR GROWTH
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PERSONNEL / YIELD RATIOS
Past experience has developed these yield ratios for recruiting a CostAccountant:
FOR EVERY 12 APPLICATIONS RECEIVED, ONLY one LOOKSPROMISING ENOUGH TO INVITE FOR AN INTERVIEW
OF EVERY 5 PERSONS INTERVIEWED, ONLY one IS ACTUALLYOFFERED A POSITION IN THE ORGANIZATION
OF EVERY 3 JOB OFFERS MADE, ONLY 2 ACCEPT THEPOSITION
OF EVERY 10 NEW WORKERS WHO BEGIN THE TRAININGPROGRAM, ONLY 9 SUCCESSFULLY COMPLETE THEPROGRAM
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Manpower Gap Analysis
The existing no of personnel and theirskills from human resource inventory
are compared with the forecasted
needs ( demand forecasting), todetermine the qualitative and
quantitative gaps in the workforce.
A reconciliation of demand and supplyforecasts will give us the no of people
to be recruited or made redundant as
the case may be.
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Summary
HR plans must fit in with overallobjectives of a firm.
They must get consistent support from
top management. Computerized human resource
information systems must be used forapplicant tracking, succession
planning, building skills inventoriesetc.
The whole exercise must be carried
out in coordination with operating
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