Chapter No 6 Man Power Planning in Labour economics

7/31/2019 Chapter No 6 Man Power Planning in Labour economics

1/22

Chapter # 6

Manpower Planning

Prepared By

Kokab Manzoor1


2/22

Outlines

Definition of Manpower planning

Need for Manpower planning

Overview of HR planning Process

Forecast demand for labor

Factors determining Demand for Labor

Forecast supply labor

Factors determining Supply for Labor

Managing shortage/surplus of labor

2


3/22

Introduction

Manpower Planning which is also called as Human

Resource Planning has now been recognized as an

important part of overall planning of any organization.

Without procurement and adequate number of

personnel it is not possible to realize the goals of an

organization.

Human Resource Planning has got an important placein the arena of industrialization.

Human Resource Planning

3


4/22

Human Resource Planning (HRP)

Definition HRP is process including forecasting,

developing and controlling by which a firm

ensures that it has the right number of people,

right kind of people at the right place, at the

right places at the right time doing work for

which they are economically more useful.

(by E. Geisler)

4


5/22

Need of Manpower Planning

Manpower Planning is a two-phased process because

manpower planning not only analyses the current

human resources but also makes manpower forecasts

and thereby draw employment programs.

Manpower Planning is advantageous to firm in

following manner:

5


6/22

1. Shortages and surpluses can be identified so thatquick action can be taken wherever required.

2. All the recruitment and selection programs are

based on manpower planning.3. It also helps to reduce the labor cost as excess staff

can be identified and thereby overstaffing can be

avoided


6


7/22

4 It also helps to identify the available talents in a

concern and accordingly training programs can bechalked out to develop those talents.

5 It helps in growth and diversification of business.

Through manpower planning, human resources canbe readily available and they can be utilized in best

manner.

6 It helps the organization to realize the importance of

manpower management which ultimately helps in the

stability of a concern.


7


8/22

Overview of the Human Resource Planning

Process

8


9/22

Human Resource Forecasting

HR Forecasting attempts todetermine the supply and

demand for various types of

human resources, and to

predict areas within theorganization where there

will be labor shortages or

surpluses.

There are three majorsteps to forecasting:

1. Forecasting the demand

for labor2. Determining labor supply

3. Determining labor

surpluses and shortages

9


10/22

HUMAN RESOURCE PLANNING

FORECASTING HR REQUIREMENTS (DEMAND ANALYSIS)

(Trying to predict future staffing needs)Managerial Estimates

Sales Projections

Vacancy Analysis (projected turnover)

FORECASTING HR AVAILABILITY (SUPPLY ANALYSIS)

(Predicting worker flows and availabilities)

Succession or Replacement Charts

Skills Inventories (use of HRIS)Transition Matrix (Markov analysis )

Personnel Ratios10


11/22

Forecasting the Demand for Labor

Trend Analysis Constructing and applying statistical models that predict

labor demand for the next year, given relatively objective

statistics from the previous year.

Leading Indicators

Objective measures that accurately predict future labor

demand. E.g. Projections

Vacancy analysis etc11


12/22

VACANCY ANALYSISHistoric departures used to project turnover

LEVEL # EMPL TURN % Expected Vacancies Expected to Remain

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 536 2964

AVERAGE TURNOVER PERCENTAGE = 536 / 3500 = 0.15 or 15%

Forecasting the Demand for Labor

12


13/22

D t i i L b S l


14/22

Determining Labor SupplyPredicting Worker Flows and Availabilities

following are the techniques an organization can use to

estimate the supply of labor;

1 Succession or Replacement Charts

Who has been groomed/developed and is ready for promotionright NOW?

2 Human Resource Information Systems (HRIS)

An employee database that can be searched when

vacancies occur.14


15/22


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 Personnel / Yield RatiosHow much work will it take to recruit one new accountant?

15

D t i i L b S l


16/22

1 SUCCESSION PLANNING

REPLACEMENT CHARTFOR EXECUTIVE POSITIONS

POSITION REPLACEMENT CARDSFOR EACH INDIVIDUAL POSITION

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

POSITION WESTERN DIVISION SALES MANAGER

DANIEL BEALER Western Division Sales Mgr Outstanding Ready Now

Present Promotion

Possible Candidates Current Position Performance Potential

SHARON GREEN W/Oregon Sales Manager Outstanding Ready Now

GEORGE WEI N. California Sales Manager Outstanding Needs Training

HARRY SHOW Utah Sales Manager Satisfactory Needs Training

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -


16

2 HUMAN RESOURCE INFORMATION


17/22

2 HUMAN RESOURCE INFORMATION

SYSTEMS (HRIS)

PERSONAL DATA

Age, Gender, Dependents, Marital status, etc

EDUCATION & SKILLS

Degrees earned, Licenses, Certifications

Languages spoken, Specialty skills

Ability/knowledge to operate specific machines/equipment/software

JOB HISTORY

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

Performance appraisals, Promotions received, Training & Development

MEMBERSHIPS & ACHIEVEMENTS

Professional Associations, Recognition and Notable accomplishments

PREFERENCES & INTERESTSCareer goals, Types of positions sought, Geographic preferences

CAPACITY FOR GROWTH

Potential for advancement, upward mobility and growth in the company 17

D t i i L b S l


18/22

3 Transition Matrix (Markov Analysis)

Example for an Auto Parts Manufacturer


18

MARKOV ANALYSIS


19/22

MARKOV ANALYSIS(Captures effects of internal transfers)

(Start = 3500) A TRANSITION MATRIX

FROM/ TO: TOP MID LOW SKILLED ASSY EXIT

TOP 100 .80 .02 .18

MID 200 .10 .76 .04 .10

LOW 600 .06 .78 .01 .15

SKILL 600 .01 .84 .15

ASSY 2000 .05 .88 .07

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

END YR WITH: 100 190 482 610 1760 [358 left]

NEED RECRUITS ? 0 10 118 240* 368 tot

NEED LAYOFFS ? (10)* (10) tot

KEEP STABLE 100 200 600 600 2000 = 3500 Tot19

MARKOV ANALYSIS


20/22

MARKOV ANALYSIS(Anticipates Changes in Employment Levels)

Employment needs are changing. We need a 10% increase in skilled workers (660),

and a 15% decrease in assembly workers (1700) by years end.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -(Start = 3500) A TRANSITION MATRIX

FROM/ TO: TOP MID LOW SKILLED ASSY EXIT

TOP 100 .80 .02 .18

MID 200 .10 .76 .04 .10

LOW 600 .06 .78 .01 .15

SKILL 600 .01 .84 .15

ASSY 2000 .05 .88 .07

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

END YR WITH: 100 190 482 610 1760 [358 left]

NEED RECRUITS ? 0 10 118 50*

NEED LAYOFFS ? (60)*

NEW LEVELS 100 200 600 600 1700 = 3260 tot

20

Determining Labor Supply


21/22


4 PERSONNEL / YIELD RATIOS

Past experience has developed these yield ratios for recruiting a CostAccountant:

for every 12 applications received, only 1 looks promising enough toinvite for an interview

of every 5 persons interviewed, only 1 is actually offered a position in

the organization of every 3 job offers made, only 2 accept the position

of every 10 new workers who begin the training program, only 9successfully complete the program

Thus: 100 applications must be received, so that

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!!!21


22/22

Problems in HRP

Resistance by employer

Resistance by employee

Resistance by trade unions Inadequate information system

Uncertainties

Integration with organizational Plans

22

Chapter No 6 Man Power Planning in Labour economics

Documents

Transcript of Chapter No 6 Man Power Planning in Labour economics