Human resource planning - I

IntroductionHuman resource planning is a process by which an organization ensures thatit has the right number and kinds of peopleat the right placeat the right timecapable of effectively and efficiently completing those tasks that will help the organization achieve its overall strategic objectives.

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IntroductionLinked to the organizations overall strategy and planning to compete domestically and globally. Overall plans and objectives must be translated into the number and types of workers needed. Senior HRM staff need to lead top management in planning for HRM issues.

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Characteristics of HRPIntegral part of corporate planning

Facilitates control of manpower cost

Facilitates effective manpower management

Brings equilibrium between demand and supply of manpower

Promotes manpower development

Objectives of HRPProvision of adequate manpowerOptimum utilization of Human ResourceMeeting future manpower needsDevelopment of manpowerPrevent Disruption of WorkControl CostsAssess surplus/shortages of manpowerForesee the impact of technology on total workload, existing employees and human resources required in the near future

Need for HRPSmooth and efficient working of OrganizationsFilling Gaps in ManpowerExpansion and DiversificationChanging TechnologyIncreased Employee MobilityCoping with changeBudgetingShortage of Skills

Advantages of HRPFacilitates scientific Recruitment and selectionRaises effectiveness of HRD programmesEnsures orderly and efficient working and growth Regulates cost factorMotivates existing employeesPrevents sudden disruptionProvides quality workforce

LimitationsProblem of AccuracySurplus makes HRP redundantEmphasis on Quantitative AspectsUncertain FutureManagement AttitudeFaulty Information SystemExpensiveTime Consuming and costlyShortage of skilled labour and high labour turnover

Steps in HRP

Factors affecting HRPImproper linkage between HRP and Corporate strategyRigidity in attitudesConflict between long term and short term HRPLack of Skilled ResourcesSeparation of EmployeesChange in Organizational ObjectivesChange in Policies

Human resource planning - II

HRISHuman Resource Information System (HRIS) is a systematic way of storing data and information foreach individual employee to aid planning, decision making, and submitting of returns and reports to the external agencies.

It merges HRM as a discipline and in particular itsbasic HR activities and processes with the information technology field.

It can be used to maintain details such as employeeprofiles, absence reports, salary admin. and various kinds of reports.

Steps of implementing an HRIS

Uses of HRIS

Advantages of computerized HRISDevelops ability to process data with accuracy and high speedHuge data on different aspects of HRM are arranged and stored systematicallyInformation users get quick access to required informationEconomicalGreater accuracyQuick communication with employee

Voluntary Retirement SchemeA voluntary retirement scheme (VRS) package is offered to employees as an incentive to retire earlier than their normal retirement age. The VRS package usually contains generous retirement benefits for certain employees.

Benefits may be in the form of:Pension or lump sum gratuityLoyalty bonusEmployee Stock option plans, etc

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Issues in VRSIdentifying the need for VRS

Cost benefit analysis

Designing the scheme

Convincing trade unions

Rehabilitating employees

Merits and Demerits of VRSRetrenching excess workforceNo legal obstacleAttractive financial compensationFlexibilityReduction of wage bill

Creates sense of fear and insecurity among employeesSeverance costOpposition from trade unionsSpoil reputation

MeritsDemerits

DownsizingA downsizing strategy reduces the scale (size) and scope of a business to improve its financial performanceA reduction of the workforce is one of only several possible ways of improving profitability or reducing costs. Objective of downsizing is to achieve rightsizing.Where there is surplus of workforce, downsizing is requiredAlternative methods to reduce employees:Reduce work hours so total salary get reduced with same number of peopleTransferOffer incentives for early retirement or VRSDeclare lay-off

OutsourcingOutsourcing is a strategic decision to give a task or activity to an independent contractor who determines how best to do the task or activity.

The firm and the independent contractor become partners and may establish a long-term relationship.

Examples of outsourced activities: IT, HR, Legal services, Manufacturing, R & D.

Demotion Demotion is the antithesis of promotion.

It is lowering of status, salary and responsibilities of an employee.

It is are given as a disciplinary measure or on grounds of incompetency of an employee or due to adverse business conditions.

Demotion policy should be open, fair and impartial.

SeparationIt is a step ahead of demotion.It involves cessation of services of a personnel form an organization.The employment relationship between and organization and an employee come to an end.Forms of retirement:ResignationDismissalDeathSuspensionLayoffRetrenchmentRetirement

Lay-offLayoff is a temporary separation of an employee by the employer under specific circumstances.

Here, the services of an employee are not terminated.

It is temporary separation.

Layoff reduces financial burden on the organization.

RetrenchmentRetrenchment is a sort of permanent separation by an employer with due notice as per statutory provisions.

The principle applied under retrenchment is, last come first go.

It is applied mainly when work force is Superfluous, not in cases of punishment, retirement, etc.

The industrial Disputes Act, 1947 has laid down conditions for retrenchment.

TerminationIt is permanent separation of an employee from the organization.

The action take should be bona fide and not be a punitive measure nor a case of victimization.

Dismissal is termination of service by way of punishment.

Pink SlipIt is an American term that refers to being fired or laid off from ones job.

It is an official notice sent to the employee for dismissal

It is a notice printed on pink paper (distributed with paychecks)

Contracting and Sub-ContractingContracting is an agreement whereby the contractor undertakes to complete a piece of work or perform a service for the commissioning party, organizing his or her own resources and managing the work at his or her own risk, in return for a financial payment.

A subcontractor is an individual or in many cases a business that signs a contract to perform part or all of the obligations of another's contract.

PromotionsPromotion involves a change from one job to another that is better in terms of status and responsibilities- Edwin flippoFeatures of promotion:Put the employee in a position where he will be of greater valueDevelop competitive spirit and zealDevelop internal source of employeesPromote employee self developmentBuild up morale, loyalty and sense of belongingnessPromote employees interest in T&DReward committed and deserving employeesCreate a feeling of contentment among employeesTypes of Promotions:HorizontalVerticalDry

Bases of PromotionPromotion based on SeniorityAdvantages:SimplicityObjectivityRewardReduces employee turnoverUnion approvalIn line with Indian cultureCriticism:Faulty assumptionIgnores performanceEfficiency suffersDemotivating

ContinuedPromotion based on Merit Advantages:Enhances efficiencyMotivatesLimitations:SubjectiveFavoritismOpposition of unionsInsecurity

ContinuedPromotion based on Seniority-Cum-MeritWays to strike a balance:Minimum length of service and meritMeasurements of seniority and merit through a common factorMinimum merit and seniority

Promotion PoliciesStatement of the organisations broad directives on promotion mattersMain characteristics:Policy statementBasis of promotionPromotion chartsCommunication of policyCareer planningDetailed recordsEmployee trainingConsistencyFair and impartialDecision making authorityAppeal mechanism

Benefits of PromotionHigher salaryHigher statusChange in nature of workNon-monetary benefitsIncentive to work efficientlyPsychological satisfaction

Raises the morale of employeesDevelops second line of leadershipReduces the rate of labor turnover and absenteeismRaises job satisfactionAttracts capable, talented, efficient and loyal workers

To Employees To Management

TransfersTransfer refers to shifting of employees from one job to another within the same organization where salary, responsibilities and category of the new job and previous job are almost the same.

Objectives of TransferOrganizational needs

Employee needs

Optimal utilization of employees

Increase employee versatility

Relief

Disciplinary action

Transfer PolicyThe policy on Employee transfer needs to address the following:Right of the organization to transferTerms and conditionsTransfer proceduresTransfer back to former jobEffects of remuneration and seniorityConditions of a good policyShould state the types of transfersPerson who has authority to order transferEffect of transfer on pay and seniorityFacilities available to transferred employeesConditions under which personal request for transfer will be entertainedWritingAppropriate authority in case of appealsBest interests

Types of Transfer Employee transfer is classified based on purpose as under:Transfers that are effected for T&DTransfers made for adjustment of varying volumesTransfers designed to correct the problem of poor employee placementCommon types of Transfer:ProductionReplacementVersatilityShiftRemedialPenal PrecautionarySectionalDepartmental

Case Study

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